Required information Problem 12-4A (Algo) Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The following information applies to the questions displayed below] Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and $436,800, respectively. They predict annual partnership net income of $466,500 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 $81,200 to Mo, $60,900 to Lu, and $91,500 to Barb, interest allowances of 10% on their initial capital investments; and the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb Problem 12-4A (Algo) Part 3 3. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $466,500. Mo, Lu, and Barb withdraw $35,700, $49,700, and $65,700, respectively, at year-end. Also close the withdrawals accounts. View transaction list Journal entry worksheet 1 2 Record the entry to close the income summary account assuming the partners agree to use plan c and net income is $466,500. Note: Enter debits before credits. Required information 3. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c $466,500. Mo, Lu, and Barb withdraw $35,700, $49,700, and $65,700, respectively, at year-end. Also cle View transaction list Journal entry worksheet < 2 Record the entry to close the partners' withdrawals accounts. (Mo, Lu, and Barb withdraw $35,700, $49,700, and $65,700, respectively, at year-end.) Note: Enter debits before credits. Date: December 31 General Journal Debit Credit Record entry Clear entry View general journal