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Garity, Maureen, and David decided to form a partnership called OnTime Copy Shop. The partners will invest the following assets in the business:

They are considering the following plans for the division of net income or net loss: 1. Equally 2. Garity 20%, Maureen 40%, and White 40% 3. In the same ratio as the beginning balances of their capital accounts. Instructions: Assume that the business had a net income of $17,500 in its first year of operation. Calculate the division of net income under each of three plans and pass a closing journal entry. Also, prepare a Statement of Partners' Equity.