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Question - The global partnership by Peter and Sohn operated coffee shop in several cities. They had capital account balances of $80,000 and $100,000, respectively. Snow directly paid $32,000 to Peter and $40,000 to Sohn for 30% of their interests in the partnership. Peter and Sohn split profits and losses on the basis of 2:3. They concluded that the partnership assets and liabilities should be revalued upon acceptance of a new partner. Prepare the journal entries to record the acceptance of Snow to the Peter and Sohn partnership.
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