R. Huma and W. How have capital balances on July 1, 2020, of $62,000 and $58,000, respectively. The partnership profit-sharing agreement specifies:

1. salary allowances of $30,900 for Huma and $21,900 for How,

2. interest at 6% on beginning capital balances, and

3. for the remaining profit or loss to be shared 60% by Huma and 40% by How.

Instructions
a. Prepare a schedule showing the division of profit for the year ended June 30, 2021, assuming profit is

(1) $70,000, 

(2) $55,000.

b. Journalize the allocation of profit in each of the situations in part (a).