Part A i. Thomas and Watts formed a partnership by investing $240,000 and $175,000, respectively. During its first calendar year, the firm earned $140,000. The partners agreed to share profit and loss by providing a salary allowance of $35,000 to Thomas and $50,000 to Watts; granting 15% interest on their initial capital investments; and share the remainder equally. Prepare the December 31 journal entries to close Income Summary account. (3 marks) 7 i. Jess, Molly and Grace are partners who share profit and loss in a 4:1:1 ratio. The partnership's capital balances are as follows: Jess, $280,000; Molly, $120,000; and Grace, $90,000. Molly decides to withdraw from the partnership. Prepare journal entries to record Molly's withdrawal from the partnership if (a) Molly sells her interest to Paul for $150,000 after Jess and Grace approve the entry of Paul as a partner; (2) Molly is paid $60,000 in partnership cash plus equipment recorded on the partnership books at $80,000 less its accumulated depreciation of $12,000. (8 marks)