The capital balances of the DEF Partnership are as follows: David $180,000 Emma 95,000 Finn 150,000 Total $425,000 The partners' income sharing ratio is: David, 25%; Emma, 45%; Finn, 30%. Assume the partnerships identifiable net assets are carried at amounts approximating fair value.

Case A: Assume Gail joins the partnership by contributing $125,000 to the partnership for a 20% interest in partnership capital.

Case B: Now assume Gail paid $90,000 for a 20% interest in partnership capital. Instruction: For each case (each case is independent), please use both Bonus method and Goodwill method to analyze the problem. Prepare the Statement of Partners Capital Balances, as well as the related journals prepared for the partnership.