At the start of 2016, Santana Rey is considering adding a partner to her business. She envisions the new partner taking the lead in generating sales of both services and merchandise for Business Solutions. S. Reys equity in Business Solutions as of January 1, 2016, is reflected in the following capital balance.

S. Rey, Capital

$

80,540

Required: 2. Prepare the January 1, 2016, journal entries necessary to admit a new partner to Business Solutions through the purchase of a partnership interest for each of the following two separate cases: (a) 1:1 sharing agreement and (b) 4:1 sharing agreement.

Journal entry worksheet

Record the admission of a new partner at a 1:1 ownership interest.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 01

Journal entry worksheet

Record the admission of a new partner at a 4:1 ownership interest.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 01