Record journal entries about the admission of a new partner

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On August 1, Joan Taylor and Tom Maid are partners in The Taylor Maid Company. They have capital balances of $30 000 and $20 000 respectively, and have an income ratio of 60% and 40%.

Problem 1: Record journal entries for each of the independent situations below about the admission of a new partner:

a) Jim Zucher agrees to purchase half of Taylor's equity for $18 000.

b) Barry Thompson agrees to purchase all of Maid's equity for $17 000.

c) Gary Malley invests $5 000 cash and equipment with a fair market value of $9 000 in the

 

Reference no: EM132719732

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