EXERCISE 15-9 Partner Admission LO8 Beth, Steph, and Linda have been operating a small gift shop for several years. After an ex- tensive review of their past operating performance, the partners concluded that the business necded to expand in order to provide an adequate return to the partners. The following bal- ance sheet is for the partnership prior to the admission of a new partner, Mary $160,000 640,000 $800,000 Cash Other Assets $200,000 265,000 215,000 120,000 $800,000 Liabilities Beth, Capital (40%) Steph, Capital (40%) Linda, Capital (20%) Figures shown parenthetically reflect agreed profit-and-loss sharing percentages Required: Prepare the necessary journal entries to record the admission of Mary in each of the follow- ing independent situations. Some situations may be recorded in more than one way 1. Mary is to invest sufficient cash to receive a one-sixth capital interest. The parties agree that the admission is to be recorded without recognizing goodwill or bonus 2. Mary is to invest $160,000 for a one-fifth capital interest. 3. Mary is to invest $160,000 for a one-fourth capital interest. 4, Mary is to invest $160,000 for a 40% capital interest