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 $ 10,700 Keith Williams, capital** $ 40,300 Accumulated depreciation 87,000 Keith Williams, withdrawals 62,000 Brian Adams, capital** 34,000 Note payable, due May 2025*** 144,000 Brian Adams, withdrawals 72,000 Office supplies 28,000 Cash 222,400 Revenues 504,000 Equipment 324,000 Utilities payable 2,400 Expenses 114,000 *Assume all account balances are normal. **The partners made no investments during the year. ***$52,000

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 $102,000 per year salary allowance to Williams, a $162,000 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.