CP 124 Assume the following information just prior to the withdrawal of Partner X:

Assets Liabilities

Cash $20,000 Inventory 50,000 Accounts payable $ 5,000

Partners Capital

X, Capital $10,000

Y, Capital 20,000

Z, Capital 35,000 65,000

$70,000 $70,000

Required: Prepare journal entries to record the following unrelated scenarios:

1. Partner X sells his interest to new partner T for $25,000.

2. Partner X sells his interest to partner Y for $30,000.

3. Partner X sells his interest and is paid a share of partnership net assets as follows

Cash $ 5,000

Inventory 5,000

Accounts payable (2,000)

Total $ 8,000

Partner Y receives a 60% share of the partnership interest of X. Partner Z receives 40%.