A partnership of attorneys in the St. Louis, Missouri, area has the following balance sheet accounts as of January 1, 2021:

Assets	$	370,000	Liabilities	$	116,000
			Athos, capital		98,000
			Porthos, capital		88,000
			Aramis, capital		68,000

According to the articles of partnership, Athos is to receive an allocation of 50 percent of all partnership profits and losses, while Porthos receives 30 percent, and Aramis, 20 percent. The book value of each asset and liability should be considered an accurate representation of fair value.

For each of the following independent situations, prepare the journal entry or entries to be recorded by the partnership.

D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing $28,000 in cash directly to the business. The goodwill method is used to record this transaction.

Aramis decides to retire and leave the partnership. An independent appraisal of the business and its assets indicates a current fair value of $340,000. Goodwill is to be recorded. Aramis will then be given the exact amount of cash that will close out his capital account.