Shepard and Grey have been partners in the medical supply business since July 18, 2003. Since the formation of the partnership, profits and losses have been shared in the ratio of 55:45, respectively. Capital balances on December 31, 2018, were $159,000 for Shepard and $106,000 for Grey. They have agreed to admit Bailey as a partner on January 1, 2019. Bailey will receive a 30% interest in partnership capital, and future profits and losses will be allocated equally among the partners. Appraisal of the partnership reveals that the assets of the partnership are valued fairly.

Assuming Bailey contributes cash of $150,000, prepare journal entries under the bonus and goodwill methods to record Baileys admission.