Wallace and Simpson formed a partnership with Wallace contributing

$88,000

and Simpson contributing

$68,000

. Their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. Wallace sold one-half of his partnership interest to Prince for

$62,000

when his capital balance was

$83,000

. The partnership would record the admission of Prince into the partnership as:\ a Debit Wallace, Capital

$62,000

; credit Prince, Capital

$62,000

.\ b Debit Wallace, Capital

$41,500

; credit Prince, Capital

$41,500

.\ c Debit Prince, Capital

$62,000

; credit Wallace, Capital

$62,000

.\ d Debit Wallace, Capital

$44,000

; credit Prince, Capital

$44,000

.\ e Debit Wallace, Capital

$41,500

; debit Cash

$20,500

; credit Prince, Capital

$62,000

.

Wallace and Simpson formed a partnership with Wallace contributing $88,000 and Simpson contributing $68,000. Their partnership agreement calls for the income (loss) division to be based on the ratio of capital investments. Wallace sold one-half of his partnership interest to Prince for $62,000 when his capital balance was $83,000. The partnership would record the admission of Prince into the partnership as: a Debit Wallace, Capital $62,000; credit Prince, Capital $62,000. b Debit Wallace, Capital $41,500; credit Prince, Capital $41,500. c Debit Prince, Capital $62,000; credit Wallace, Capital $62,000. d Debit Wallace, Capital $44,000; credit Prince, Capital $44,000. e Debit Wallace, Capital $41,500; debit Cash $20,500; credit Prince, Capital $62,000