Reyes and Santiago are partners who share profits and losses in the ratio of 7:3, respectively. On January 1, 2022, their capital accounts are: Reyes Santiago Total (b) P480,000 320,000 P800,000 Torres is admitted for a 40% interest in the partnership by paying directly the partners a total amount of P480,000. Required: (a) Give the entry in the partnership books to record Torres's admission. How should the P480,000 cash be divided between Reyes and Santiago? Mendez wishes to purchase one-fourth interest in the partnership of Nocum, Olivar, and Perez. The three partners agree to sell to Mendez one-fourth of their respective capital and profit and loss interests in exchange for a payment of P2,000,000. The partners' capital accounts and the profit and loss ratio immediately before the admission of Mendez are as follows: Nocum Olivar Perez Capital Accounts P 3,200,000 2,000,000 1,200,000 P 6,400,000 All assets and liabilities are fairly valued. Required: P/L Ratio 60% 30% 10% 100% (a) Give the entry in the partnership books to record Mendez's admission. (b) Immediately after Mendez's admission, what should be the capital balances of Nocum, Olivar, and Perez, respectively?