The Statement of Financial Position of the XY partnership on December 31, 2018, appears below.

CASH	$ 60,000	LIABILITIES	$ 60,000
OTHER ASSETS	200,000	X, CAPITAL	90,000
		Y, CAPITAL	110,000
TOTAL ASSETS	$260,000	TOTAL LIABILITIES AND CAPITAL	$260,000

X and Y share profits and losses in the ratio 50:50. Each of the following questions is independent of the others.

Prepare journal entries for each of the following:

Use bonus method where appropriate and show all computations.

a. Refer to the above information. Assume that Z purchases a one-fourth proportionate capital interest directly from Y for a total of $60,000. (Direct purchase)

b. Refer to the above information. Assume Z invests $60,000 cash into the XY partnership for a one-fourth interest in partnership capital and profits.

c. Refer to the above information. Assume that Z invests $80,000 cash into the XY partnership for a one-fifth interest in partnership capital and profits.