Partnerships Test v 1. James and Joe's partnership capital balances are $40,000 and $60,000, respectively They share profits and losses in a ratio of 1:3. Elizabeth is admitted to the partnership and invests $60,000 for a one-fourth interest. Required: Prepare the journal entry to admit Elizabeth to the partnership DATE ACCOUNT/DESCRIPTION DEBIT CREDIT 2 Joyce and Bitty have average capital balances of $25,000 and $10,000, respectively. The partners have agreed to allow $20,000 salary allowances to each. The partners will share income and losses in a 1:2 ratio. How much will each partner's capital account change if net income is $90,000? Required: Prepare the journal entry to reflect this change in capital. PR DEBIT CREDIT DATE ACCOUNT/DESCRIPTION Anthony and Bill's partnership capital balances are $40,000 and $60,000, respectively. They share profits and losses in a ratio of 1:3. Richard is admitted to the partnership by investing $60,000 for a 40% interest. Required: Prepare the journal entry to admit Richard to the partnership. 3. PR DEBIT DATE ACCOUNT/DESCRIPTION