The capital accounts of the Lee, Monroe and Newport partnership at December 31, 2018, together with profit and loss sharing ratios are as follows:

Lee (20%) 130,000

Monroe (30%) 200,000

Newport (50%) 170,000

The partners agree to admit Olson into the partnership.

REQUIRED: Prepare the journal entry or entries to admit Olson into the partnership under each of the following independent assumptions.

1. Monroe and Newport sell 30% of each of their interests to Olson for $120,000 paid directly to Monroe and Newport.
2. Olson invests $120,000 cash in the partnership for a 25% interest in capital and profits and the partnership assets are not revalued.
3. Same situation as Number 2 except partnership assets are revalued.
4. Olson invests $100,000 cash in the partnership for a 15% interest in the capital and profits and partnership assets are revalued.