Gamine, Ronald, and Fenny have equity in a partnership of $80,000, $80,000, and $120,000, respectively, and they

Question:

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

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...