[The following information applies to the questions displayed below.]

Bill Beck, Bruce Beck, and Barb Beck formed the BBB Partnership by making capital contributions of $81,900, $318,500, and $509,600, respectively. They predict annual partnership net income of $534,000 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 $86,400 to Bill, $64,800 to Bruce, and $98,000 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Bill, 40% to Bruce, and 40% to Barb.

Income (Loss) Sharing Plan

Plan (a)BillBruceBarbTotalNet Income (loss)$534,000Balance allocated equallyBalance of income (loss)$0Shares to the partners$178,000$178,000$178,000$534,000

Plan (b)BillBruceBarbTotalNet Income (loss)$534,000Balance allocated in proportion to initial investments0Balance of income (loss)$534,000Shares to the partners$0$0$0$0

Plan (c)BillBruceBarbTotalNet income (loss)$534,000Salary allowances0Balance of income (loss)Interest allowances0Balance of income (loss)Balance allocated0Balance of income (loss)$0Shares of the partners$0$0$0$0

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 $236,200, and that Bill, Bruce, and Barb withdraw $43,600, $57,600, and $73,600, respectively, at year-end. (Do not round intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.)

BBB PARTNERSHIP
Statement of Partners' Equity
For Year Ended December 31
	Bill	Bruce	Barb	Total
Initial partnership investments				0
Net income
Total net income				0
Total	0	0	0	0
				0
	$0	$0	$0	$0

3.	Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (c) and that net income is $236,200. Also close the withdrawals accounts.
	a Record the entry to close the income summary account assuming the partners agree to use plan(c) and net income is $236,200. b Record the entry to close the partners' withdrawals accounts. (Bill, Bruce, and Barb withdraw $43,600, $57,600, and $73,600, respectively, at year-end.)