Jack, Kyle, and Nelson 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 tothe partnership. Prepare entries in journal form without explanations to record the admission of Billy tothe 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.