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The following information applies to the questions displayed below.) Mo, Lu, and Barb formed the MLB Partnership by making investments of $81,000, $315,000, and $504,000,

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The following information applies to the questions displayed below.) Mo, Lu, and Barb formed the MLB Partnership by making investments of $81,000, $315,000, and $504,000, respectively. They predict annual partnership net income of $529,500 and are considering the following alternative plans of sharing Income and loss: (a) equally: (b) in the ratio of their initial capital Investments; or () salary allowances of $86,000 to Mo, $64,500 to Lu, and $97,500 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. 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 $529,500; and that Mo, Lu, and Barb withdraw $42,900, $56,900, and $72,900, respectively, at year-end. (Do not round Intermediate calculations. Enter all allowances as positive values. Enter losses as negative values.) MLB PARTNERSHIP Statement of Partners' Equity For Year Ended December 31 Ma Lu Barb Total Initial partnership investments Not Income 0 Total net income 0 Total 0 0 0 0 0 $ 0 s 0 $ 0$ 0 Required information [The following information applies to the questions displayed below.) Mo, Lu, and Barb formed the MLB Partnership by making investments of $81,000, $315,000, and $504,000, respectively. They predict annual partnership net income of $529,500 and are considering the following alternative plans of sharing Income and loss: (0) equally: (b) in the ratio of their initial capital investments; or (asalary allowances of $86,000 to Mo, $64.500 to Lu, and $97,500 to Barb; Interest allowances of 10% on their initial capital investmentsand the remaining balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb. 3. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan (C) and that net income is $529,500. Mo, Lu, and Barb withdraw $42,900, $56,900, and $72,900, respectively, at year-end. Also close the withdrawals accounts. View transaction list Journal entry worksheet > Record the entry to close the income summary account assuming the partners agree to use plan c and net income is $529,500. Not Enter debits before credits General Journal Dobit Credit DATO December 31 View transaction list Journal entry worksheet

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