NEW PARTNER

Abe and Babe have capital accounts in the partnership of $40,000 and $20,000 respectively, and share income and losses by 7.3. The partnership has agreed to admit Cabe as a partner under the following independent assumptions. Prepare journal entries for each.

a) Cabe invests $20,000 into business for a 25% interest

b) Cabe invests $40,000 into business for a 25% interest

c) Cabe pays Abe $80,000 for 100% of Abe's interest

d) Abe invests $10,000 into business for a 50% interest