Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted trial balance information for the year ended December 31, 2023, appears below.

Account	Balance*		Account	Balance*
Accounts payable	$	9,800		Keith Williams, capital**	$	31,300
Accumulated depreciation		78,000		Keith Williams, withdrawals		53,000
Brian Adams, capital**		25,000		Note payable, due May 2025***		126,000
Brian Adams, withdrawals		63,000		Office supplies		19,000
Cash		211,600		Revenues		486,000
Equipment		306,000		Utilities payable		1,500
Expenses		105,000

*Assume all account balances are normal. **The partners made no investments during the year. ***$43,000 of the note payable is due in May 2024. Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profit/(losses) are to be shared by allowing a $93,000 per year salary allowance to Williams, a $153,000 per year salary allowance to Adams, and the remainder on a 3:2 ratio. (Leave no cell blank. Enter "0" when the answer is zero.)

2. Prepare the journal entry to close the Income Summary account to the partners capital accounts.

3. Prepare a statement of changes in equity and a classified balance sheet.