t April 30 of the current year, partners capital balances and the profit- and loss-sharing ratio in Monty Enterprises are as follows:

Partner		Capital Balance				Profit and Loss Ratio
R. Short			$41,000			3
K. Osborne			$21,000			2
W. Sanga			$58,000			4

On May 1, the Sandhill Company is formed by admitting N. Osvald to the firm as a partner.

A)Journalize the admission of Osvald if Osvald invests $72,200 cash in the partnership for a 40% ownership interest.

b)Osvald invests $30,000 in the partnership for a 20% ownership interest.