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At the start of 2014, Santana Rey is considering adding a partner to her business. She envisions the new partner taking the lead in generating sales of both services and merchandise for Business Solutions. S. Rey’s equity in Business Solutions as of January 1, 2014, is reflected in the following capital balance. S. Rey, Capital $ 80,580 Required: 2. Prepare the January 1, 2014, journal entries necessary to admit a new partner to Business Solutions through the purchase of a partnership interest for each of the following two separate cases: (a) 1:1 sharing agreement.(b) 4:1 sharing agreement with Rey retaining four-fifths interest. (C) Prepare the January 1, 2014, journal entry required to admit a new partner if the new partner invests cash of $20,145.(D) After posting the entry in part C, what would be the new partner's equity percentage?
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