Required information Problem 12-4A Partnership income allocation, statement of partners' equity, and closing entries LO P2 [The...

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Required information Problem 12-4A Partnership incomeallocation, statement of partners' equity, and closing entries LOP2 [The following information applies to the questions displayedbelow.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnershipby making capital contributions of $77,400, $301,000, and $481,600,respectively. They predict annual partnership net income of$508,500 and are considering the following alternative plans ofsharing income and loss: (a) equally; (b) in the ratio of theirinitial capital investments; or (c) salary allowances of $84,400 toMo, $63,300 to Lu, and $95,500 to Barb; interest allowances of 10%on their initial capital investments; and the balance shared asfollows: 20% to Mo, 40% to Lu, and 40% to Barb.
Problem 12-4A Part 2 2. Prepare a statement of partners’ equityshowing the allocation of income to the partners assuming theyagree to use plan (c), that income earned is $227,700, and that Mo,Lu, and Barb withdraw $40,500, $54,500, and $70,500, respectively,at year-end. (Do not round intermediate calculations. Enter allallowances as positive values. Enter losses as negativevalues.)

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Problem 124 A a Equally Income allocation Statement Mo Meek Lu Ling Barb Beck Total Net Income Equally 169500 169500 169500 508500 Total 169500 169500 169500 508500 As partners share the income of partnership equally The Income is divided among partners equally ie 5085003 169500 Statement of Partners Equity Mo Meek Lu Ling Barb Beck Total Beginning Capital Balance 77400 301000 481600 860000 Net Income 169500 169500 169500 508500 Closing Capital Balance 246900 470500 651100 1368500 As there are no other items except Net income share it is added to the capital accounts of the partners to get the closing See Answer

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Required information Problem 12-4A Partnership incomeallocation, statement of partners' equity, and closing entries LOP2 [The following information applies to the questions displayedbelow.] Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnershipby making capital contributions of $77,400, $301,000, and $481,600,respectively. They predict annual partnership net income of$508,500 and are considering the following alternative plans ofsharing income and loss: (a) equally; (b) in the ratio of theirinitial capital investments; or (c) salary allowances of $84,400 toMo, $63,300 to Lu, and $95,500 to Barb; interest allowances of 10%on their initial capital investments; and the balance shared asfollows: 20% to Mo, 40% to Lu, and 40% to Barb.Problem 12-4A Part 2 2. Prepare a statement of partners’ equityshowing the allocation of income to the partners assuming theyagree to use plan (c), that income earned is $227,700, and that Mo,Lu, and Barb withdraw $40,500, $54,500, and $70,500, respectively,at year-end. (Do not round intermediate calculations. Enter allallowances as positive values. Enter losses as negativevalues.)