Prepare entries in journal form to record the admission of


Ernie, Ron, and Denis have equity in a partnership of $40,000, $40,000, and $60,000, respectively, and they share income and losses in a ratio of 1:1:3. The partners have agreed to admit Henry to the partnership. Prepare entries in journal form to record the admission of Henry to the partnership under the following conditions:

1. Henry invests $60,000 for a 20 percent interest in the partnership, and a bonus is recorded for the original partners.

2. Henry invests $60,000 for a 40 percent interest in the partnership, and a bonus is recorded for Henry.

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Accounting Basics: Prepare entries in journal form to record the admission of
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