Prepare the journal entry on the books of the partnership

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Question - The Sam and Kyle Partnership has partner capital account balances as follows:

Sam, Capital $350,000

Kyle, Capital 450,000

The partners share income and losses in the ratio of 70% to Sam and 30% to Kyle.

Instructions

Prepare the journal entry on the books of the partnership to record the admission of Liam as a new partner under the two independent circumstances.

1. Liam pays $200,000 to Sam and $250,000 to Kyle for one-half of each of their ownership interest in a personal transaction.

2. Liam invests $700,000 in the partnership for a one-third interest in partnership capital.

Reference no: EM131894294

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