On Aug. 31, 2006, Partners Marasigan and Reyes have capital account balances of P80,000 and P120,000,...

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On Aug. 31, 2006, Partners Marasigan and Reyes have capital account balances of P80,000 and P120,000, respectively. They shared profits and losses in a 2:3 ratio. They agreed to admit Samoza into the partnership with a 20% interest in net assets and profits in exchange for a P60,000 cash investment. Marasigan and Reyes were to retain their prior income-sharing arrangement. On Sept. 30, 2006, after the closing of the partnership's revenue and expense ledger accounts, the income summary ledger account had a credit balance of P50,000. Required: Prepare the journal entries to record the admission of Samoza and to close the income summary ledger account. On Aug. 31, 2006, Partners Marasigan and Reyes have capital account balances of P80,000 and P120,000, respectively. They shared profits and losses in a 2:3 ratio. They agreed to admit Samoza into the partnership with a 20% interest in net assets and profits in exchange for a P60,000 cash investment. Marasigan and Reyes were to retain their prior income-sharing arrangement. On Sept. 30, 2006, after the closing of the partnership's revenue and expense ledger accounts, the income summary ledger account had a credit balance of P50,000. Required: Prepare the journal entries to record the admission of Samoza and to close the income summary ledger account.