Exercise $12-11$

Admission of new partner

$P_3$

The Struter Partnership has total partners' equity of $$510,000,$ which is made up of Main, Capital, $$400,000,$ and Frist, Capital, $$110,000.$ The partners share net income and

loss in a ratio of $80\%$ to Main and $20\%$ to Frist. On November $1,$ Adison is admitted to the partnership and given a $15\%$ interest in equity and a $15\%$ share in any income and

loss. Prepare the journal entry to record the admission of Adison under each separate assumption: Adison invests cash of $(1)$ $$90,000$; $(2)$ $$120,000$; and $(3)$ $$80,000.$