Higgs is admitted to the partnership of Reano & Nam. Prior to her admission, the partnership books show Reano'scapital balance at $120,000and Nam at $60,000. Assume Reano and Nam share profits and losses equally.

Requirement 1. Compute each partner's equity on the books of the new partnership under the following plans: a Higgs pays $85,000 for Nam equity. Higgs pays Nam directly.Begin by computing the partner's equity base for plan a. Higgs pays $85,000 for Nam's equity.Higgs pays Nam directly. (Enter a share for each partner. Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Enter negative amounts with a parentheses or minus sign.)

a.Higgs pays $85,000 for Nam equity.Higgs pays Nam directly.

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

c. Higgs contributes $80,000to acquire a 1/4 interest in the partnership.

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

Plan A		Reano	Nam	Higgs
Partnership capital before admission of Higgs
Effect on capital balance as a result of admission of Higgs
Partnership capital after admission of Higgs

THEN MAKE SURE TO ANSWER,

Finnegan and Hart form a partnership on January 1,2018, contributing $62,000and $27,000,respectively. The partnership had net income of $166,500.Based on the partnership agreement,Finnegan'sshare of net income was $96,500 andHart's share was $70,000. Finnegan and Hart each withdrew cash of $40,000 for personal use during the year.

1.	Journalize the entry to close net income to the partners.
2.	Journalize closing the partners' withdrawal accounts. Explanations are not required.
3.	Calculate the balances in each partners' capital account after allocation of net income and partners' withdrawals of cash. (Assume the partnership's accounting year began on January 1,2018,and ended on December 31,2018.)

Date			Accounts and Explanation	Debit	Credit