Problem IV $-$ PARTNER ADMISSION

Pepo Partnership allows partner Pedro to sell her $$100,000$ equity in the partnership to Juan. Juan pays Pedro $$85,000.$

Instructions: Record the partnership's journal entry for the sale of Pedro's interest to Papo on Sept $30.$

Problem Solution IV

$\backslash$table$[[$DATE$,$ACCOUNT DESCRIPTION,DEDIT,CREDIT$],[30$sep,,,$],[,,,]]$

Problem V $-$ PARTNER ADMISSION

The Struter Partnership has total partners' equity of $$510,000,$ which is made up of Main, Capital $$400,000$ and Frist, Capital, $$110,000.$ The partners share net income and loss in a ratio of $80\%$ to Main and $20\%$ Frist. On November $1,$ Adison is admitted to the partnership and given a $15\%$ interest in equity and a $15\%$ share in any income and loss.

Instructions: Prepare the journal entry to record the admission of Adison under each separate assumption. Adison invest cash of $(1)$ $$90,000$; $(2)$ $$120,000$; and $(3)$ $$80,000.$

Problem Solution V

$\backslash$table$[[$DATE$,$ACCOUNT DESCRIPTION,DEDIT,CREDIT$],[(1)],[$Interest sold to Adison:$],[(2)$