7. Barbara Stone and James Lovejoy form a partnership with capital contributions of $700,000 and $800,000 respectively. Their partnership agreement calls for Barbara Stone to receive $150,000 in salary and each partner is to receive a 15% interest allowance on the partner's beginning balance with the remaining income or loss divided equally. If the net loss for the initial year is $20,000 calculate Barbara Stone and James Lovejoy's respective share of the net loss and record the entry. 8. Dan King contributed $5,000 cash and inventory and land to a new partnership. The inventory had a book value of $1,000 and a market value of $3,000. The land had a book value of $1,500 and a market value of $4,000. The partnership also accepted a $10,000 note payable owed by Dan King to a creditor. Prepare the partnership journal entry to record Dan King's investment.