Rishi and Ketchum are partners at an accounting firm. They currently have the following capital balances as at January 2, 2021: Rishi, Capital $45,000 Ketchum, Capital $24,000 The current partnership agreement states that Rishi and Ketchum split the profits and losses as 60% (Rishi) and 40% (Ketchum). Rishi and Ketchum are currently looking to admit a new partner, Chan.

a) Chan will become a partner in the business by investing $37,000 cash for 25% interest. Determine the amount of bonus that would go to Rishi and Ketchum. (5 marks)

b) Record the entry for Chans investment in the business