Question - The ABC Partnership has 3 equal partners with the following capital accounts:
a. Partner A capital account $100,000
b. Partner B capital account $100,000
c. Partner C capital account $100,000
They are allowing Partner D to become an equal (1/4) partner for a contribution of $200,000
a) Prepare the journal entry if the partnership uses the bonus method.
b) Prepare the journal entry if the partnership uses the goodwill method.