Donna Leeds and Ann Reeves have capital accounts of $420,000 and $480,000, respectively Jeff Evans and Pete Patton are to join the partnership Evans invests $425,000 in the partnership for which he receives a capital credit of $425,000 Patton purchases a one half interest from Leeds for $300,000 an...

a Cash 425000 Evans Capital 425000 Mills C ...

Donna Leeds and Ann Reeves have capital accounts of $420,000 and $480,000, respectively. Jeff Evans and Pete

Question:

Donna Leeds and Ann Reeves have capital accounts of $420,000 and $480,000, respectively. Jeff Evans and Pete Patton are to join the Evans invests $425,000 in the for which he receives a capital credit of $425,000. Patton purchases a one-half interest from Leeds for $300,000 and a one-fourth interest from Reeves for $90,000.

Instructions
(a) Prepare the journal entries to record the admission of Evans and Patton to the Determine the capital balances of the partners after the admission of Evans and Patton.

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...