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$1)$ Anna and Bess share partnership profits and losses at $60\%$ and $40\%,$ respectively. The partners agree to admit Cal into the partnership for a $50\%$ interest in capital and earnings. Capital accounts immediately before the admission of Cal are:

Anna $(60\%)$ $ $300,000$

Bess $(40\%)300,000$

Total $ $600,000$

Required:

$1.$ Prepare the journal entry$($s$)$ for the admission of Cal to the partnership assuming Cal invested $$400,000$ for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Cal paid the money directly to Anna and to Bess for $50\%$ of each of their respective capital interests. The partnership records goodwill.

$2.$ Prepare the journal entry$($s$)$ for the admission of Cal to the partnership assuming Cal invested $$500,000$ for the ownership interest. Cal paid the money to the partnership for a $50\%$ interest in capital and earnings. Assume the valuation is based on the capital of the current partnership, which is fairly valued. The partnership records goodwill.

$3.$ Prepare the journal entry$($s$)$ for the admission of Cal to the partnership assuming Cal invested $$700,000$ for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Cal paid the money to the partnership for a $50\%$ interest in capital and earnings. The partnership records goodwill.

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