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Question: Zero Consultants has two partners, Sophia and Maria, who share net income and loss equally. Total equity of the business is $105,000, which is made up of Sophia, Capital, of $62,500 and Maria capital of $42,500. During the year, Juan invests $32,500 and is admitted to Zero Consultants with the 20% interests in equity and 20% share in any income and loss.
Prepare the entry to record the admission of Juan to Zero Consultants.
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