On January 1, 2020, Max Stallon and Alice Cooper agreed to pool their assets and form a partnership called S&C Consulting. They agree to share all profits equally and make the following initial investments: Stallon Cooper Cash $12,000 $28,000 Accounts receivable 7,000 5,000 Allowance for doubt accounts 2,200 800 Office furniture 18,000 31,000 On December 31, 2020, the partnership reported a loss for the year of $23,000. On January 1, 2021, Stallon and Cooper agreed to accept Mika Jones into the partnership by purchasing 25% of Cooper's interest in the partnership and 20% of Stallon's interest. The partnership agreement is amended to provide for the following sharing of profit and losses: Jones Stallon Cooper Salary allowance $18,000 $32,000 $65,000 Remaining ratio 5 3 2 For the year ended December 31, 2021, profit was $280,000 For the year ended December 31, 2021, profit was $280,000. Instructions a) Journalize the following transactions: (1) the initial contributions to the partnership by Stallon and Cooper on January 1, 2020. (2) the allocation of the loss to the partners at the end of December 2020. (3) the purchase of the partnership interest by Adams on January 1, 2021. b) Prepare a schedule to show the division of profit at December 31, 2021. 7 A B I E = % PA * #A-1 Jan 1, Accounts - Partner Stallon 2020 Debit Credit #A-3 Accounts Debit Jan 1, 2021 Credit #B #B Division of Profit Year Ended December 31, 2021 Jones Stallon Cooper Total Profit Division of profit