Steve Reese is a well-known Interlor designer in Fort Worth, Texas. He wants to start his own business and corvinces Rob ODonnell, a local merchant, to contribute the capital to form a parthership. On January 1, 2019, O'Donnell invests a bulloing worth $128,000 and equipment valued at $136,000 as well as $56,000 in cash. Although Reese makes no tanglble contributlon 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 parthership. Reese draws up the following profit and loss agreement: - O'Donnell will be credied annually with interest equal to 20 percent of the beginning capltal balance for the year. - O'Donnell will also have added to his capital account 15 percent of partnership income each year fwithout regard for the preceding Interest figure) or $8,000, whichever is larger. All remaining income is credited to Reese. - Nelther partner is allowed to withdraw funds from the partnership during 2019 . Thereafter, each can draw $7.000 annually or 20 percent of the beginning caplial balance for the year, whichever is larger. The partnership reported a net loss of $10,000 during the first year of its operation. On January 1, 2020, Terri Dunn becomes a third partner in this business by contributing $60,000 cash to the partnership. Dunn recelves a 20 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 speclfied. - Any remaining profit or loss will be split on a 6:4 basis between Reese and Dunn, respectively. Parthership income for 2020 is reported as $98,000. Each partner withdraws the full amount that is allowed. On January 1, 2021, Dunn becomes Ill and sells her Interest in the partnership (with the consent of the other two parthers) to Judy Postner. Postner pays $145,000 directly to Dunn. Net income for 2021 is $115,000 with the partners again taking their full drawing allowance. On January 1, 2022. Postner wthdraws from the business for personal reasons. The artcles of partnership state that any partner may leave the partnership at any time and is entitled to recelve cash in an amount equal to the recorded capltal balance at that time plus 10 percent. a. Prepare journal entrles 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 entrles. b. Prepare journal entrles 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 entrles. Prepare foumal entnes to record the proceding transsetions an the assumpton that the bonus (ar no revalustian) me used. Drawings need not be recorted, although the balsnoss should be. induobd in the dosing entries. (If no entry Is far a tronasctionjevent, select ' Win joumal entry required' in the first sccount field, fund your ansiwers the the nosher smaunt.) Prepare joumd entries to record the prewious tranestians on the assumption that the goocwilf (ar rewaluation) methe used. Drawngs need not be resorted, altheugh the balences should be induded in the dosing entries. (if no entry is for a transctionjevent, felect 'No joumbl entry required' in the first scoount ficld. Do nat round intermed ste calculsh Faund your fins snawers to the nearent dollar amount.]