Jenny Kirk and Harold Spock are partners who share in the income equally and have capital balances

Question:

Jenny Kirk and Harold Spock are partners who share in the income equally and have capital balances of $90,000 and $62,500, respectively. Kirk, with the consent of Spock, sells one-third of her interest to Benjamin McCoy. What entry is required by the partnership if the sale price is

(a) $20,000?

(b) $40,000?

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...