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Mo, Lu, and Barb formed the MLB Partnership by making investments of $70,200, $273,000, and...

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Accounting

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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, (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 Part 3 3. Prepare the December 31 journal entry to close Income Summary assuming they agree to use plan cand 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

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