Dows and Sands' partnership capital balances are $40,000 and $60,000,respectively.They share profits and losses in a 1:3 ratio,respectively.Davis is admitted to the partnership and invests $60,000 for a one-fourth interest,with a bonus to the old partners.Prepare the journal entry to admit Davis to the partnership.

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The Answer of Dows and Sands' partnership capital balances are $40,000 and $60,000,respectively.They share profits and losses in a 1:3 ratio,respectively.Davis is admitted to the partnership and invests $60,000 for a one-fourth interest,with a bonus to the old partners.Prepare the journal entry to admit Davis to the partnership.

Dows and Sands' Partnership Capital Balances Are $40,000 and $60,000,respectively