Keith Williams and Brian Adams were students when they formed a partnership several years ago for a part-time business called Music Works. Adjusted tnal balance Information for the year ended December 31, 2020, appears below. heemuts payable Romated depreciation tas Adams. apata $ 10, 200 38.000 29.000 67.000 Account Keith Williams, capital Reith Williams, withdrawals Note payable, due May 2022 CEE supplies Revenues Dualisier payable Balance $ 35,300 57,000 139,000 2.000 494,000 1,900 Ees 15,000 100,000 "Assume all account balances are normal **The partners made no Investments during the year *$47.000 of the note payable is due in May 2021 Required: 1. Prepare calculations that show how the profit should be allocated to the partners assuming the partnership agreement states that profiilosses) are to be shared by allowing a $97.000 per year salary allowance to Williams, a $157000 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.) Adams Total $ 103 000 162.000 3 391 000 200.000 135.000 525.000 0 301 000 75.000 50.000 3 17.00 213.000 2. Prepare the Journal entry to close the Income Summary account to the partners' capital accounts. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Dec 31, 2020 Keith Williams, capital Brian Adams, capital 3. Prepare a statement of changes in equity and a classified balance sheet MUSIC WORKS Statement of Changes in Equity For Year Ended December 31, 2020 Williams Adams Total Capital, March 31, 2020 103.000 s S 163.000 50,000 266,000 125,000 75,000 Total S 178,000 S 213.000 s 391,000 Add: Partners withdrawals 2.193.000 248.000 407.300 130,000 $ 63.000 S 73,000 S MUSIC WORKS Balance Sheet December 31, 2020 Assets Current assets s Cash Office supplies 223.600 29.000 Total current assets $ 252.600 S Property, plant and equipment: Equipment Less Accumulated depreciation Total assets 326.000 88,000 238.000 490,000 S Liabilities S 10.800 Current liabilities Accounts payable Utilities payable Current portion of notes payable 2.500 53.000 S 80.300 Total current liabilities Non-current liabilities Current portion of notes payable 93,000 Total lisbilities S 169.900 Equity Keith Williams, capital Brian Adams capital 160.300 17