Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debras capital is $200,000, Merinas capital is $160,000, and they share income in a ratio of 3:2, respectively.

Required: Record Waynes admission for each of the following independent situations: a. Wayne directly purchases half of Merinas investment in the partnership for $98,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the purchase of one-half of Merina's investment for $98,000 by Wayne.

b. Wayne invests the amount needed to give him a one-third interest in the partnerships capital if no goodwill or bonus is recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record Wayne's investment, for one-third interest; no goodwill or bonus.

c. Wayne invests $100,000 for a 25 percent interest. Goodwill is to be recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record Wayne's investment of $100,000 for a one-fourth interest; goodwill.

d. Debra and Merina agree that some of the inventory is obsolete. The inventory account is decreased before Wayne is admitted. Wayne invests $90,000 for a 25 percent interest. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

record the write-down of inventory

record the admission of Wayne

e. Wayne directly purchases a 25 percent interest by paying Debra $81,000 and Merina $60,000. The land account is increased before Wayne is admitted. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a, record the revaluation of land

b. record the reclassification of capital for the admission of wayne

f. Wayne invests $68,000 for a 20 percent interest in the total capital of $428,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record Wayne's investment of $68,000 for the one-fifth interest given that the total capital is $428,000.