P 16-9 Recording new partner investment—Various situations Three partners, Pat, Mic, and Hay, have capital balances and profit-sharing ratios at December 31, 2016, as follows:

Pat $144,000 profit ratio 2/5 Mic 216,000 profit ratio 1/2 Hay 90,000 profit ratio 1/10 On January 1, 2017, Con invests $85,080 in the business for a one-sixth interest in capital and income.

REQuIRED 1. Prepare journal entries giving two alternative solutions for recording Con’s admission to the partnership.

2. Prepare journal entries giving two alternative solutions for recording Con’s admission to the partnership if she purchased a one-sixth interest from each of the partners, rather than paying the $85,080 into the business.