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1. The capital accounts of Brad Hughes and Mitchell Isaacs have balances of $120,000 and $100,000, respectively. Leah Craft and Jayme Clark are to be admitted to the partnership. Craft buys one-fifth of Hughes's interest for $30,000 and one-fourth of Isaacs' interest for $20,000. Clark contributes $50,000 cash to the partnership, for which she is to receive an ownership equity of $50,000.
(a) Journalize the entries to record the admission of
(1) Craft and
(2) Clark.
(b) What are the capital balances of each partner after the admission of the new partners?
A publishing company is trying to decide whether to publish a new business law textbook. Based on a careful reading of the latest draft of the manuscript, the publisher's senior editor in the business textbook division assesses the distribution of..
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