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McNabb joins the partnership by contributing $48 000 in cash. A new partnership agreement is drawn up. Brady, Manning and McNabb agree to salaries of $6 000 for each partner and a 5:4:3 income ratio.
The business recorded a net income of $60 000. Brady had drawings of $20 000 and Manning had drawings of $8 000.
Problem a) Record the entry to admit the new partner into the business.
Problem b) Record the entry to allocate the net income to the partners' capital accounts.
Problem c) Prepare a Statement of Partners' Equity for 2015.
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