Admission of a new Partner: recording a Bonus
e7A.Gamine, Ronald, and Fenny have equity in a partnership of $80,000, $80,000, and
$120,000, respectively, and they share income and losses in a ratio of 1:1:3. The part- ners have agreed to admit Amit to the partnership. Prepare journal entries to record the admission of Amit to the partnership under the following conditions:
1. Amit invests $120,000 for a 20 percent interest in the partnership, and a bonus is recorded for the original partners.
2. Amit invests $120,000 for a 40 percent interest in the partnership, and a bonus is recorded for Amit.
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