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Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2

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Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $73,800, $287,000, and $459,200, respectively. They predict annual partnership net income of $487,500 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 $82,800 to Mo, $62,100 to Lu, and $93,500 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.

Problem 12-4A Part 2

2. Prepare a statement of partners equity showing the allocation of income to the partners assuming they agree to use plan (c), that income earned is $220,900, and that Mo, Lu, and Barb withdraw $38,100, $52,100, and $68,100, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.)

Please help me to fix the answer. Thank you.

Answer is complete but not entirely correct. MLB PARTNERSHIP Statement of Partners' Equity For Year Ended December 31 Mo Lu 73,800 287,000 Barb 459,200 Total 820,000 Initial partnership investments Net income Salary allowances Interest allowances Balance allocated Total net income | 82,800 7,380 33,420 X 123,600 197,400 38,100 159,300 62,100 28,700 66,840 X 157,640 444,640 52,100 392,540 93,500 45,920 66,840 X 206,260 665,460 68,100 597,360 Total Less partners' withdrawals Ending capital balances 487,500 1,307,500 158,300 $ 1,149,200 $ $ $