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Betty Schwartz and Albert Unger are partners. They would like to expand the expertise in their business by admitting Sue Bowman to the partnership on
Betty Schwartz and Albert Unger are partners. They would like to expand the expertise in their business by admitting Sue Bowman to the partnership on lanuary 1, 20X1. The capital account balances on January 1, 20X1, after revaluation of assets are Schwartz, $90,000, and Unger, $70,000. Net income or net loss is shared equally. On page 8 of the general journal that follows, record the admission of Bowman to the partnership on January 1, 20x1, under each of the following independent conditions. Omit explanations.
- Schwartz sells one-half of her interest to Bowman for $55,000 in cash.
- Schwartz sells one half of her interest to Bowman for $43,000 in cash.
- Bowman invests $65,000 for one-third interest in the business
- Bowman invests $50,000 for 20 percent interest in the business
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