.

Requirements

1.	Calculate Potvin's capital in the new partnership.
2.	Journalize the partnership's receipt of the $55,000 from Potvin.

Penn has $93,500 capital and Haymer has $71,500 capital in the Penn & Haymer partnership. Penn and Haymer share profits and losses equally. Ryanne Potvin contributes cash of $55,000 to acquire a 1/4 interest in the new partnership.