Pam and John are partners in the PJ$$s partnership sharing income in a ratio of $3$:$1.$ Gerry is to be admitted into the partners

hip with a $20$ percent interest in the business.

Pam $ $120,000$

John $40,000$

Required:

Prepare journal entries to record Gerry$$s admission into the partnership for each of the following independent situations.

e$.$ Gerry invests $$35,000,$ and goodwill is to be recorded.