Assume the following information just prior to the withdrawal of Partner X:

Required: Prepare journal entries to record the following unrelated scenarios:
1. Partner X sells his interest to new partner T for $25,000.
2. Partner X sells his interest to partner Y for $30,000.
3. Partner X sells his interest and is paid a share of partnership net assets as follows
Cash
Inventory
Accounts Payable
$ 5,000
5,000
(2,000)
$_8000_
Partner Y receives a 60% share of the partnership interest of X.
Partner Z receives 40%.

Transcribed Image Text:

Assets Liabilities $20,000 Accounts payable 5,000 Cash Inventory 50,000 Partners' Capital $10,000 X, Capital Y, Capital Z, Capital 20,000 35,000 65,000 $70,000 $70,000