Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debras capital is $200,000, Merinas capital is $160,000, and they share income in a ratio of 3:2, respectively.

Journal Entries for:

e. Wayne directly purchases a 25 percent interest by paying Debra $82,000 and Merina $53,000. The land account is increased before Wayne is admitted.