Sanjay and Kim started a medical clinic. The partners' equity accounts reflected the following balances on January 1, 2023:

Equity Sanjay, Capital $120,000

Kim, Capital $180,000

They share profit/losses equally.

On June 1, 2023, a new partner, Reginal Laos admitted to the partnership with a cash investment of $200,000.

Required

(i): Prepare the journal entry to record the admission of Laos under each of the following unrelated assumptions, where he is given:

(a) 40% interest in equity

(b) 25% interest in equity

Required

(ii): What is the Partnership Equity in $ and % before and after adding Laos, under scenario (b)? Partner $ Before % Before