1.Morris, Terry and Grace are partners who share profit and loss in a 4:2:2 ratio. The partnership's capital balances are as follows: Morris, $280,000; Terry, $120,000; and Grace, $210,000. Prepare the journal entries to record Faye's entry into the partnership if (a) Faye invests $200,000 to the partnership with a 25% equity; (b) Morris sells one-half of his partnership interest to Faye for $180,000.

2.What are the ways a partner can withdraw from a partnership? Explain how to account for the withdrawal of a current partner from a partnership.