Rachel and Patrick Co. sells inventory through their partnership. They expand their business and decide to admit Sonny to the partnership. Before the admission of Sonny, the statement of financial...

Extracted text: Rachel and Patrick Co. sells inventory through their partnership. They expand their business and decide to admit Sonny to the partnership. Before the admission of Sonny, the statement of financial position of Rachel and Patrick is as follows: Cash P80,000 120,000 280,000 720,000 120,000 P1,320,000 Accounts payable Loan from Patrick Rachel, Capital (60%) Patrick, Capital (40%) P140,000 100,000 600,000 480,000 Accounts receivable Merchandise inventory Fixed assets, net Loan to Rachel Total assets Total liabilities and equity P1,320,000 Required: Record the admission of Sonny (and asset revaluation, if any) for each of the following independent situation: 1. Sonny invests P279,000 for half of Patrick's capital. The money goes to Patrick. 2. Sonny directly purchases a one-fourth (1/4) interest from Rachel and Patrick by paying Rachel, P192,000, and Patrick, P216,000. The equipment account is undervalued before Sonny's admission.