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Hope Abrams and Crystal Santori are partners who share in the income equally and have capital balances of $174,300 and $58,140, respectively. Abrams, with the

Hope Abrams and Crystal Santori are partners who share in the income equally and have capital balances of $174,300 and $58,140, respectively. Abrams, with the consent of Santori, sells one-third of her interest to David Cruz.

Assume the sale occurs on December 31. What entry is required by the partnership if the sales price is (a) $58,100? (b) $77,100? Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS
Abrams, Santori, and Cruz
General Ledger
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable
113 Allowance for Doubtful Accounts
114 Interest Receivable
115 Notes Receivable
116 Inventory
117 Office Supplies
118 Store Supplies
119 Prepaid Insurance
120 Land
123 Equipment
124 Accumulated Depreciation-Equipment
129 Asset Revaluations
133 Patent
LIABILITIES
210 Accounts Payable
211 Salaries Payable
213 Sales Tax Payable
214 Interest Payable
215 Notes Payable
EQUITY
310 Hope Abrams, Capital
311 Hope Abrams, Drawing
312 Crystal Santori, Capital
313 Crystal Santori, Drawing
314 David Cruz, Capital
315 David Cruz, Drawing
330 Income Summary
REVENUE
410 Sales
610 Interest Revenue
EXPENSES
510 Cost of Merchandise Sold
520 Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Equipment
523 Delivery Expense
524 Repairs Expense
529 Selling Expenses
531 Rent Expense
533 Insurance Expense
534 Office Supplies Expense
535 Store Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Miscellaneous Expense
710 Interest Expense

Journal

Assume the sale occurs on December 31. Refer to the Chart of Accounts for exact wording of account titles. Scroll down to access parts (a) and (b) of the exercise.

(a) What entry is required by the partnership if the sales price is $58,100?

PAGE 10

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1

2

(b) What entry is required by the partnership if the sales price is $77,100?

PAGE 10

JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

1

2

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