Mitchell and Morton formed a partnership, M&M Confectioners, on 1st July 2019. The partners agreed to invest equal amounts of capital with Mitchell investing the following assets and liabilities: Accounts Receivable Inventory Prepaid Insurance Store Equipment Accounts Payable Carrying Amount 18,000 65,775 3,600 40,200 33,450 Fair Value 17,400 68,700 3,600 37,500 33,450 Morton invested cash in an amount equal to the net assets contributed by Mitchell. The partnership agreement specified the following: Interest of 12% p.a to be charged on advancesand partners initial capital contribution. Interest charged 10% p.a on partner's drawings. Mitchell to receive 75% of residual profits dueto managing the business while Morton would receive 25%. Additionalinformation: Morton advanced $22,500 cash to the partnershipon 1st January 2020. Thiswill be repaid by 31st December 2020. Morton withdrew $10,000 in anticipation of profit on 30th March and Mitchell withdrew $27,000 on 1st June . During the financial year ending 30th June 2020, the partnership earned net profit of $82,500 Required: 1. Prepare the journal entries required to record each partner's contribution to the partnership on 1st July 2019. (3 marks) 2. Prepare a schedule to allocate the partnership profit based on the partnership agreement. (4 marks) 3. Prepare the Equity section of the Partnership Balance sheet at 30tJune 2020