Question
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
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Abrams, Santori, and Cruz | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 | |
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1 |
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2 |
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(b) What entry is required by the partnership if the sales price is $77,100?
PAGE 10
JOURNAL
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | |
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1 |
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2 |
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