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Kals and Leah, partners in Best Designs, have capital batances of $40,000 and $60,000, respectively. Ader joins the partnership by buying one-half of Kala's interest
Kals and Leah, partners in Best Designs, have capital batances of $40,000 and $60,000, respectively. Ader joins the partnership by buying one-half of Kala's interest for $30,000. In addition, because of Adam's outstanding sales skills, the partners agree to increase his interest to 40% if he invests another $10,000. The Income-sharing ratio of Kala, Leah, and Adam is 4:3:1. a. Journalize the entries to record (1) the purchase Kala's interest by Adam and (2) Adam's contribution of $10,000 to the partnership. If an amount box does not require an entry, leave it blank. (1) (2) b. Immediately after Adam's admission to the partnership, Leah sells one-fourth of her interest to Denton for $35,000. Journalize the entry to record this trans
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