Admission of a New Partner 6. On August 8, Art O'Toole sold his equity in the partnership to Bill Morrison for $5,300. Art's capital account had a $4,000 balance. Record the journal entry. Investing into an Existing Partnership 7. Phyllis Richardson wants to have a one-third interest in a law practice that has two partners with capital balances as follows: Ronald Small, Capital Al Prior, Capital $5,600 2,000 How much must Phyllis invest into the partnership? Calculating Profit-and-Loss Ratio 8. From the following capital balances, calculate the profit-and-loss ratio for each account: Billy Bliss, Capital Antonio James, Capital $200 900 Teddy Pennington, Capital 800