Mason Jiri and James are partners in Woodware Company

Their
Mason, Jiri, and James are partners in Woodware Company. Their capital balances as of July
31, 2014, are as follows.Each partner has agreed to admit Frank to the partnership.Required1.
Prepare the journal entries to record Frank’s admission to or Mason’s withdrawal from the
partnership under each of the following conditions:a. Frank pays Mason $25,000 for 20 percent
of Mason’s interest in the partnership.b. Frank invests $40,000 cash in the partnership and
receives an interest equal to her investment.c. Frank invests $60,000 cash in the partnership for
a 20 percent interest in the business. A bonus is to be recorded for the original partners on the
basis of their capital balances.d. Frank invests $60,000 cash in the partnership for a 40 percent
interest in the business. The original partners give Frank a bonus according to the ratio of their
capital balances on July 31, 2014.e. Mason withdraws from the partnership, taking $105,000.
The excess of withdrawn assets over Mason’s partnership interest is distributed according to
the balances of the Capital accounts.f. Mason withdraws by selling her interest directly to Frank
for $120,000.2. When a new partner enters a partnership, why would the new partner pay a
bonus to the old partners, or why would the old partners pay a bonus to the newpartner?
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Mason Jiri and James are partners in Woodware Company Their
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