John, Mike and Greg combined their proprietorship in August 2019 to start a partnership named JMK parentship. The firm will specialize in retailing medical equipment. The partners had the following assets prior to the information of the partnership. John Mike Greg Cash 10,000 40,000 Account receivable 5,000 Allowance for (1,000) doubtful accounts equipment 50,000 Accumulated (15,000) depreciation - equipment The current market shows that the equipment has a fair value of $40,000 and after a discussion among the partners they agreed to have allowance for doubtful accounts of $500, and to share net income according to the following percentage 20%, 40% and 40%, respectively. Required 1. Prepare the journal entries to record the investment of all partners 2. Prepare the journal entries to record the division of the net income, assuming the net income was $90,000 and Mike had drawings of $5,000