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Question - Brian, Ryu, and Jezebel were partners with capital account balances of $75,000, $100,000 and $82,000, respectively. They agreed to admit Jonny to the partnership. Jonny purchased 35% of each partner's interest, with payments directly to Brian, Ryu, and Jezebel of $30,000, $40,000, and $32,800, respectively. Before the admission of Jonny, the profit and loss sharing ratio was 3:2:2. The partners agreed to use the book value method to account for the admission of Jonny to the partnership.
Required - Prepare the journal entry to record the admission of Jonny to the partnership.
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