ABCD Limited, a partnership, has the following balance sheet at January 1, 20X0, prior to the admission of a new partner, Eden.

Cash and current assets $39,000

Liabilities $52,000

Land. 234,000

Adams, capital 26,000

Building and equipment 130,000

Barnes, capital 52,000

Cordas, capital 117,000

Davis, capital 156,000

Total assets $403,000

Total liabilities and capital $403,000

Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: Adams, 15%; Barnes, 35%; Cordas, 30%; and Davis, 20%.

(A) Prepare the journal entries necessary to record goodwill.

(B) After goodwill has been recorded, what are the individual capital balances of the original partners?

(C) Prepare the journal entry necessary to allocate original partners' balances to Eden.

(D) After all journal entries have been recorded, what are the individual capital balances?