Four independent situations are given below. Assume partners of the existing partnership are Maria Heath and Lisa Curtis. The new partner is Wade Torres. For each situation, prepare the appropriate journal entries to admit the new partner. Page 12 of a cash receipts journal and page 6 of a general journal are provided in the Working Papers. Source documents are abbreviated as follows: memorandum, M; receipt, R. Your instructor will guide you through the following examples.

1. Maria Heath and Lisa Curtis have equity of $24,000.00 each in an existing partnership. On April 1 of the current year, the two partners agree to admit Wade Torres as a third partner. Each partner agrees to sell Mr. Torres

$8,000.00 of her equity and to give him a one-third share of ownership. Mr. Torres is to pay the money directly to the two original partners.

2. Maria Heath and Lisa Curtis have equity of $80,000.00 each in the partnership. Partners share equally in all changes in equity. On April 1 of the current year, the two partners agree to admit Wade Torres as a partner with a one-third share of the total equity.

3. Maria Heath and Lisa Curtis have equity of $50,000.00 each in an existing partnership. The partners share equally in all changes in equity. On April 1 of the current year, the existing partners agree to admit Wade Torres with a one-third share of the total equity.

4-- 4. Maria Heath and Lisa Curtis have equity of $34,000.00 each in an existing business. The partners share equally in all changes in equity. On April 1 of the current year, Wade Torres is admitted as a new partner with a one-third share of the total equity.

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Apr. 1. Journalized personal sale of equity to new partner, Wade Torres, $16,000.00, distributed as follows: from Maria Heath, $8,000.00; from Lisa Curtis, $8,000.00. M32.