B. Fell and C. Otto share income on a 7 : 3 basis. They have capital balances of $95,000 and $65,000, respectively, when D. Santo is admitted to the partnership.

Instructions Prepare the journal entry to record the admission of D. Santo under each of the following assumptions. (a) Investment of $80,000 cash for a 30% ownership interest with bonuses to the existing partners. (b) Investment of $45,000 cash for a 30% ownership interest with a bonus to the new partner.