Reasoning Process for the Admission in Partnership

Order Details
Case Scenario 9. (TCO G) Reese and Janet share partnership profits and losses at 70% and 30%, respectively. The partners agree to admit Smith into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Smith are:
Reese (70%)
$ 400,000
Janet (30%)
$ 300,000
Total
$ 700,000
REQUIRED:
Prepare the journal entry(s) and defend your reasoning process for the admission of Smith to the partnership assuming Smith invested $400,000 for the ownership interest. Smith paid the money directly to Reese and to Janet for 50% of each of their respective capital interests. The partnership records goodwill.
Prepare the journal entry(s) and defend your reasoning process for the admission of Smith to the partnership assuming Smith invested $300,000 for the ownership interest. Smith paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.
Prepare the journal entry(s) and defend your reasoning process for the admission of Smith to the partnership assuming Smith invested $800,000 for the ownership interest. Smith paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill

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