The partnership of R. S. Johnson, B. J. Williams, and F. A. Brown has a net income of $ 240,000 for the current year. The balances in the partners’ Capital accounts at the beginning of the year were $ 64,000, $ 68,000, and $ 75,000, respectively. At the end of the year, the balances of the Drawing accounts are $ 26,000, $ 29,300, and $ 27,000, respectively. The partnership agreement stipulates salary allowances as follows: Johnson, $ 68,300; Williams, $ 63,000; Brown, $ 76,000. The partnership agreement also allows interest of 10 percent on the balances of the partners’ Capital accounts at the beginning of the year. The remainder of the net income, after salary and interest allowances, is divided equally.

Required
1. Prepare the section of the income statement for the current year that deals with division of net income.
2. Prepare the entries to close the firm’s Income Summary and Drawing accounts on December 31.
3. Assuming a net income of $ 210,000, prepare the section of the income statement that deals with division of net income.