Exercise 15-9 Beth, Steph, and Linda have been operating a small gift shop for several years. After an extensive review of their past operating performance, the partners concluded that the business needed to expand in order to provide an adequate retum to the partners. The following balance sheet is for the partnership prior to the admission of a new partner, Mary. Cash Other Assets $161,000 685,000 $846,000 Liabilities Beth, Capital (40%) Steph, Capital (40%) Linda, Capital (20%) $270,000 252,000 210,000 114,000 $846,000 Figures shown parenthetically reflect agreed profit-and-loss sharing percentages. Prepare the necessary journal entries to record the admission of Mary in each of the following independent situations. Some situations may be recorded in more than one way. (a) Your answer is correct Mary is to invest sufficient cash to receive a one-sixth capital interest. The parties agree that the admission is to be recorded without recognizing goodwill or bonus. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Credit Debit Account Titles and Explanation 115200 Cash 115200 Mary, Capital SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 2 of 5 used (b) Mary is to invest $160,000 for a one-fifth capital interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Credit Bonus Method Debit Goodwill Method (To record goodwill) (To record investment) SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 0 of 5 used