PLEASE HELP ME SOLVE #3 and #4

Steve Reese is a well-known interior designer in Fort Worth, Texas. He wants to start his own business and convinces Rob O'Donnell, a local merchant, to contribute the capital to form a partnership. On January 1, 2016, O'Donnell invests a building worth $120,000 and equipment valued at $120,000 as well as $40,000 in cash. Although Reese makes no tangible contribution to the partnership, he will operate the business and be an equal partner in the beginning capital balances. To entice O'Donnell to join this partnership, Reese draws up the following profit and loss agreement: O'Donnell will be credited annually with interest equal to 20 percent of the beginning capital balance for the year. O'Donnell will also have added to his capital account 20 percent of partnership income each year (without regard for the preceding interest figure) or $4,000, whichever is larger. All remaining income is credited to Reese. Neither partner is allowed to withdraw funds from the partnership during 2016. Thereafter, each can draw $7,000 annually or 10 percent of the beginning capital balance for the year, whichever is larger. The partnership reported a net loss of $9,000 during the first year of its operation. On January 1, 2017, Terri Dunn becomes a third partner in this business by contributing $53,000 cash to the partnership. Dunn receives a 25 percent share of the business's capital. The profit and loss agreement is altered as follows: O'Donnell is still entitled to (1) interest on his beginning capital balance as well as (2) the share of partnership income just specified. Any remaining profit or loss will be split on a 6:4 basis between Reese and Dunn, respectively. Partnership income for 2017 is reported as $90,000. Each partner withdraws the full amount that is allowed. On January 1, 2018, Dunn becomes ill and sells her interest in the partnership (with the consent of the other two partners) to Judy Postner. Postner pays $180,000 directly to Dunn. Net income for 2018 is $150,000 with the partners again taking their full drawing allowance. On January 1, 2019, Postner withdraws from the business for personal reasons. The articles of partnership state that any partner may leave the partnership at any time and is entitled to receive cash in an amount equal to the recorded capital balance at that time plus 10 percent. a. Prepare journal entries to record the preceding transactions on the assumption that the bonus (or no revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. b. Prepare journal entries to record the previous transactions on the assumption that the goodwill (or revaluation) method is used. Drawings need not be recorded, although the balances should be included in the closing entries. Required A Required B Prepare journal entries to record the previous transactions on the assumption that the goodwill (or revaluatio method is used. Drawings need not be recorded, although the balances should be included in the closing entr no entry is required for a transaction/event, select "No journal entry required in the first account teld. Do ni round intermediate calculations. Round your final answers to the nearest dollar amount.) Credit No 1 Date 01/01/2016 Debit 120,000 120.000 General Journal Building Equipment Cash Goodwill O Donnell, capital Reese, capital 280.000 280.000 2 1231/2016 Reese capital O Donnell, capital Income summary 60,000 9,000 3 01/01/2017 Cash Goodwill Dunn, capital 53,000 131,333 X 184.332X 4 12/31/2017 34.000 21,100 18,435 O'Donnel, capital Reese, capital Dunn, capital O'Donnell, drawings Reese, drawings Dunn, drawings 34.000 21.100 18,433X 5 12/31/2017 90,000 Income summary O'Donnell, capital Reese, capital Dunn, capital 86,000 2,400 1,600 es Sacs Sacs sessssssssssssssssssssssssssssssss 6 01/01/2018 39.06 Goodwill O'Donnell, capital Reese, capital Dunn, capital 7,813x 18,750X 12,500X] 7 180,000 01/01/2018 Dunn, capital Postner, capital 180,000 8 12/31/2018 34,78 23.475X 18,000 O Donnell, capital Reese, capital Postner, capital O'Donnell, drawings Reese, drawings Postner, drawings 23.479X 18.000 9 12/31/2018 100.00 Income summary O Donnell, capital Reese, capital Postner, capital 80,646X 5.612X 3,742 X 10 01/01/2019 Goodwill O'Donnell, capital Reese, capital Postner, capital 12.167 29,2017 19.468X 11 01/01/2019 214.14 X Postner, capital Cash 214,143