Assume that two individuals agree to form a partnership. Partner A is contributing an operating business that reports the following balance sheet:

Cash	.$120,000		Accounts payable.	$160,000
Receivables	160,000		Accrued liabilities	120,000
Inventories	200,000		Total liabilities	$280,000
Total assets	$480,000		Net assets	$200,000

Partner B is contributing cash of $280,000. The partners agree that the initial capital of the partnership should be shared equally.

Required A: Prepare the journal entry to record the capital contributions of the partners assuming that the partners wish to employ the Bonus Method.

Required B: Prepare the journal entry to record the capital contributions of the partners assuming that the partners wish to employ the Goodwill Method.