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Jensen, Zhang, and Singh had a partnership that splits profits and losses equally. Singh declared his intention to withdraw from the partnership. Partnership assets were

Jensen, Zhang, and Singh had a partnership that splits profits and losses equally. Singh declared his intention to withdraw from the partnership. Partnership assets were revalued and partner capital balances were adjusted to the following amounts:

Jensen

$90,000

Zhang

$70,000

Singh

$ 100,000

Due to a set of unusual legal circumstances, it was mutually agreed that the partnership would settle with Singh for a cash payment of $120,000. Please provide the journal entry for that transaction:

Calculations:

General Journal

Accounts

Debit

Credit

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