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Mo , Lu , and Barb formed the MLB Partnership by making investments of $ 6 7 , 5 0 0 , $ 2 6
Mo Lu and Barb formed the MLB Partnership by making investments of $ $ and $ respectively. They predict annual partnership net income of $ and are considering the following alternative plans of sharing income and loss: a equally; b in the ratio of their initial capital investments; or c salary allowances of $ to Mo $ to Lu and $ to Barb; interest allowances of on their initial capital investments; and the remaining balance shared as follows: to Mo to Lu and to Barb.
Prepare the December journal entry to close Income Summary assuming they agree to use plan c and that net income is $ Mo Lu and Barb withdraw $ $ and $ respectively, at yearend. Also close the withdrawals accounts.
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