Admitting New Partners Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $222,000 and $93,000, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. a.  What entry is required by the partnership if the sales price is $60,000? If an amount box does not require an entry, leave it blank.     fill in the blank 0b7edefb8011019_2 fill in the blank 0b7edefb8011019_3     fill in the blank 0b7edefb8011019_5 fill in the blank 0b7edefb8011019_6 b.  What entry is required by the partnership if the sales price is $90,000? If an amount box does not require an entry, leave it blank.     fill in the blank 5aa9c705f072fc1_2 fill in the blank 5aa9c705f072fc1_3     fill in the blank 5aa9c705f072fc1_5 fill in the blank 5aa9c705f072fc1_6

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Admitting New Partners

Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of $222,000 and $93,000, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis.

a.  What entry is required by the partnership if the sales price is $60,000? If an amount box does not require an entry, leave it blank.

    fill in the blank 0b7edefb8011019_2 fill in the blank 0b7edefb8011019_3
    fill in the blank 0b7edefb8011019_5 fill in the blank 0b7edefb8011019_6

b.  What entry is required by the partnership if the sales price is $90,000? If an amount box does not require an entry, leave it blank.

    fill in the blank 5aa9c705f072fc1_2 fill in the blank 5aa9c705f072fc1_3
    fill in the blank 5aa9c705f072fc1_5 fill in the blank 5aa9c705f072fc1_6
 
Expert Solution
Step 1 Introduction

Partnership: It is the relationship where two or more parties having compatible vision, values, and goals, from an agreement to do something together. A partnership also requires a commitment not only to the business but to each other and to the good.

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