Question
Pat and Rene have been operating a partnership and decide to make Troy a third partner. Current capital balances and profit sharing ratios are below:
Capital Ratio
Pat $140,000 70%
Rene $ 60,000 30%
Total $200,000
Troy will pay $100,000 to receive a 50% interest in the business. Please provide journal entry for this transaction.
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
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