Q1. Bob leaves ABC Partnership and he has negative equity, $40,000 (debit balance). The remaining partners, Amy and Jim, have $25,000 and $75,000 of equity, respectively. How much equity will Amy and Jim have after Bob leaves.

Q2. A 6%, 5-year bond with a par value of $150,000 sells at 103%. Market interest is 4%. Create the journal entry to record the issuance transaction.