Wallace, Simpson, and Prince are partners and share income and losses in a 2:6:2 ratio.

Wallace, Simpson, and Prince are partners and share income and losses in a 2:6:2 ratio. The partnership’s capital balances are Wallace, $75,920; Simpson, $87,600; and Prince, $70,080. Royal is admitted to the partnership on July 1 with a 20% equity and invests $58,400. The partnership would record the admission of Royal into the partnership as: