Steven Myer and William Riggs are partners in an existing business. Each partner has equity of \($30,000.00.\) On October 1 of the current year, the two partners agree to admit Sandra DeVito as a third partner. Each of the partners agrees to personally sell Sandra \($10,000.00\) of his equity and to give her a one-third share of ownership.

Sandra is to pay the money directly to the two original partners.

Instructions:
Journalize the transaction using page 12 of a general journal.

Transcribed Image Text:

Transaction: Oct. 1. Journalized personal sale of equity to new partner, Sandra DeVito, $20,000.00, distributed as follows: from Steven Myer, $10,000.00; from William Riggs, $10,000.00. M24.