Question: On January 1, 2021, the capital balances in Cook Partnership are as follows: Mr. Salt $40,000 Ms. Pepper $48,000 Neither partner had any drawings in 2021. Instructions: Prepare closing entries to allocate the partnership profit under the following situations: a. In 2021, the partnership reports profit of $180,000. There is no partnership agreement. b. In 2021 the partnership reports profit of $120,000. The income ratio provides for salary allowances of $84,000 for Mr. Salt and $60,000 to Ms. Pepper and the remainder to be shared equally. c. In 2021, the partnership reports profit of $120,000. Assume the partnership agreement calls for profit to be divided with a salary for $80,000 to Mr. Salt and $60,000 to Ms. Pepper. Mr. Salt is allowed 6% of interest on his beginning capital and the remainder is divided 70%-30%. Round amounts to the nearest dollar. Show ALL calculations for full marks