Joanna Wang is admitted to a partnership. Prior to the admission of Wang, the partnership books show Tanya Wird's Capital balance at $79,000 and Alan Bales' Capital balance at $39,500. Wird and Bales share profits and losses equally.

Required

1. Compute the amount of each partner's equity on the books of the new partnership under each of the following plans:

a. Wang purchases Bales's interest in the business, paying $47,250 directly to Bales.

b. Wang invests $39,250 to acquire a one-fourth interest in the partnership.

c. Wang invests $71,500 to acquire a one-fourth interest in the partnership.

2. Make the partnership journal entry to record the admission of Wang under plans a, b, and c in Requirement 1. Explanations are not required.