The Felton and Burchell Partnership has partner capital account balances as follows: Felton, Capital, $550,000 and Burchell, Capita, $200,000. The partners share income and losses in the ratio of 60% to Felton and 40% to Burchell.

Case:

1. Santos pays $400,000 to Felton and $150,000 to Burchell for one-half of each of their ownership interest in a personal transaction.
2. Santos invests $600,000 in the partnership for a one-third interest in partnership capital.
3. Santos invests $240,000 in the partnership for a one-third interest in partnership capital.

Required:

Prepare the journal entry on the books of the partnership to record the admission of Santos as a new partner based on the above three (3) independent circumstances.