Partner Admission

Phil Phoenix and Tim Tucson are partners in an electrical repair business. Their respective capital balances are $90,000 and $50,000, and they share profits and losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process they elect to admit Don Dallas into the Partnership.

Required:

Prepare the journal entry to record the admission of Don Dallas into the partnership under each of the following conditions:

A. Don acquires a one-fifth capital interest for $60,000 cash investment in the partnership. Total capital after the admission is to be $200,000. Use the bonus method.

B. Don invests $40,000 for a one-fifth interest in partnership capital. Implicit goodwill is to be recorded. Use the goodwill method.

This is what I have so far. Please help me confirm if I did part A correctly, and help me figure out how to do part B. Thank you.

Dan Captice or w 3/E1/-Cash-00,000 Day Capital roo methd Phil, caphal ioo ovo netha