Required: Make the journal entries for the formation of the partnership on 1/1/20. Problem V: The following information is available concerning the agreement for income (loss) distribution of the Earth, Wind & Fire partnership for 2019: Income to be awarded based on labor. Earth, $10,000; Wind $20,000; Fire, $25,000 Interest is to be awarded based on a 10% return on capital. Earth's capital is $100,000; Wind's capital is $40,000, and Fire's capital is $50,000 The remainder is to be allocated on 2:1:1 basis. REQUIRED: 1) Prepare a schedule of income distribution if 2019 net income was $150,000. 2) Prepare a schedule of income" distribution if there was a LOSS of ($10,000) in 2019. Problem VI: The partnership of DeGrom, Syndergaard, and Peterson have respective capital balances of $130,000, $100,000, and $70,000. The firm decides to expand their partnership by deciding to admit Lugo who agrees to contribute $100,000 for a 20% equity stake. The old partners share profits and losses 2:1:1. Required: Prepare the journal entry to record Lugo's admission into the partnership. Problem VII: The partnership of Allen, Brett, and Carter decided to liquidate. They share all gains and losses by a ratio of 2:1:1. After selling off the non-cash assets and allocating all gains and losses based on those sales Allen's capital balance was $40,000, Brett's was $80,000: Carter though had a capital deficit of ($24,000). Assuming Carter does not provide $24,000 to wipe away his deficit how should it be handled? A) Allen should absorb $12,000 and Brett should absorb $12,000 B) Allen should absorb $8,000 and Brett should absorb S16,000 C) Allen should absorb $16,000 and Brett should absorb $8,000 D) Allen should absorb $18,000 and Brett should absorb $6,000