Matt Albin, Ryan Peters and Seth Ramsey invested $82,000, $49,200 and $32,800, respectively, in a partnership. During its first calendar year, the firm earned $135,000.

Required
Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $135,000 net income to the partners under each of the following separate assumptions. The partners
(1) Have no agreement on the method of sharing income and loss;
(2) Agreed to share income and loss in the ratio of their beginning capital investments; and
(3) Agreed to share income and loss by providing annual salary allowances of $48,000 to Albin, $36,000 to Peters, and $25,000 to Ramsey; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.