Question 4 Toronto. On January 1, 2018, Jane, Melissa and Victoria invested $100,000. $200,000 and $300,000 During its first year of operation, the firm recorded a net profit of $300,000. REQUIRED Prepare journal entries to close the firm's Income Summary account as of December 31, 2018 and to allocate the profit to each partner in each of the following scenario. a) The partners did not draft any partnership agreement on the method of distributing profits. (2 marks) b) The partners agreed to share the profit and losses in the ratio based on their initial investments (2 marks) c) The partners agreed to share profit by providing annual salary allowances of $25,000 to Jane, $35,000 to Melissa, and $45.000 to Victoria; allowing 12.5% annual interest on the partner's beginning investments; and sharing the remaining profit equally. (8 marks) ventually, they decided to share profit and loss equally. After a few years of services, they ecided to liquidate their partnership on January 1, 2021. Prior to the liquidation, their Balance heet appeared as follows: Jane, Melissa and Victoria Balance Sheet as at January 1, 2021 Fixed Assets Property and equipment Current Assets Cash $840,000 160.000 1.000.000 Current Liabilities Accounts Payable 300.000 Equity Jane Melissa Victoria $140.000 280.000 280,000 700,000 1.000.000 6