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John and Ron are partners with capital balances of $30,000 and $40,000, respectively. They share profits and losses in a 25:75 ratio. John and
John and Ron are partners with capital balances of $30,000 and $40,000, respectively. They share profits and losses in a 25:75 ratio. John and Ron admit Lou to a 20% interest in a new partnership when Lou invests $10,000 in the business. 1. Journalize the partnership's receipt of cash from Lou. 2. What is each partner's capital in the new partnership?
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Survey of Accounting
Authors: Carl S. Warren
8th edition
1305961889, 978-1337517386, 1337517380, 978-1305961883
