3. Johnston and Dune have the following capital balances of $160,000 and 130,000. After operating for five years on their own, they decide to let Smith join the partnership for $80,000 and 20% ownership. In addition, the Articles of partnership state that Johnston and Dune will split proceeds on a 70 percent (Johnston) and 30 percent (Dune) basis. The cash paid by Smith with go directly to the business. Create the journal entry using the goodwill method, show your work. 4. The following partners began a partnership and have the following capital balances: Spartan, $80,000, David, $150,000, and Franklin, $40,000. The articles of partnership stipulate that profits and losses be assigned in the following manner: Each partner is allocated 10 percent of their total capital balance. Spartan is granted a compensation allowance of $10,000 for work done at the business. Any remaining profits and losses are allocated on a 3:5:2 basis (Spartan, 30%, David 50%, and Franklin 20%). Assume net income is $220,000. Required: Create an allocation of net income schedule