After the partnership has been operating for a year, the Capital accounts of Martin and Steven are $30,000 and $20,000, respectively Sania buys a one sixth interest in the partnership by investing cash of $22,000 What will be the Capital account balances of the partners in the new Martin, Steven, a...

Partners equity in the original partnership 50000 Cash invest ...

After the partnership has been operating for a year, the Capital accounts of Martin and Steven are

Question:

After the has been operating for a year, the Capital accounts of Martin and Steven are $30,000 and $20,000, respectively. Sania buys a one-sixth interest in the by investing cash of $22,000. What will be the Capital account balances of the partners in the new Martin, Steven, and Sania assuming a bonus to the old partners, who share income and losses equally? Prepare the journal entry to record the transfer of ownership on the books.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...