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Problem 2 (25 points) Bush and Carter are partners in an automobile repair business. Their...

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Accounting

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Problem 2 (25 points) Bush and Carter are partners in an automobile repair business. Their respective capital balances are $425,000 and $275,000, and they share profits in a 3:2 ratio. Because of growth in their repair business, they decide to admit a new partner. Gore is admitted to the partnership, after which Bush, Carter and Gore agree to share profits in a 3:2:1 ratio. Required: Prepare the necessary journal entries to record the admission of Gore in each of the following independent situations: A. Gore invests $300,000 for a one-fourth capital interest. The goodwill method is to be used. B. Gore invests $150,000 for a one-fifth capital interest. The bonus method is to be used

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