Jordan, Kyle, and Noah have equities in a partnership of $100,000, $160,000, and $140,000, respectively, and share income and losses in a ratio of 5:3:2, respectively. The partners have agreed to admit Billy to the partnership. Prepare entries in journal form without explanations to record the admission of Billy to the partnership under each of the following assumptions:
a. Billy invests $80,000 for a 25 percent interest, and a bonus is recorded for Billy.
b. Billy invests $160,000 for a one-fifth interest, and a bonus is recorded for the old partners.