Case one: (15 marks).

Sameer, Abed and Naveen have a partnership. Their capital balances are $360,000, $520,000 and $600,000, respectively. They share profits and losses 25%, 35% and 40%, respectively. Rana wants to become a partner with a 10 percent share in partnership capital with a $240,000 cash contribution to the partnership. The fair market value for the partner is equal to book values

Required:

1- Calculate Sameer, Abed, Naveen and Rana ending capital balances under the Bonus Method and Goodwill Method.

2- Journalize the required entries under both methods