27 Dec Jeff Bowman and Kristi Emery, who have ending capi
Jeff Bowman and Kristi Emery, who have ending capital balances of $100,000 and $60,000, respectively, agree to admit two new partners to their business on August 18, 20-. Dan Bridges will buy one-fifth of Bowman’s capital interest for $30,000 and one-fourth of Emery’s capital interest for $20,000.Payments will be made directly to the partners. Anna Terrell will invest $50,000 in the business, for which she will receive a $50,000 capital interest.1. Prepare general journal entries showing the transactions admitting Bridges and Terrell to the partnership.2. Calculate the ending capital balances of all four partners after the transactions.