Hadley harris is admitted to the partnership of Reamey and Nedia.Prior to her admission, the partnership books show Gabby Reamey's capital balance at $100,000 and Carlos Nedia's at $50,000.Assume Reamey and Nedia share profits and losses equally

Requirements

1.Compute each partner's equity on the books of the new partnership under the following plans:

a. Harris pays $85,000 for Nedia's equity.Harris pays Nedia directly.

b. Harris contributes $50,000 to acquire a 1/4 interest in the partnership.

c. Harris contributes $60,000 to acquire a 1/4 interest in the partnership.

2. Journalize the entries for admitting the new partner under plans a,b and c.