Yon Haggerdorf and Sue Lee, who have ending capital balances of $80,000 and $60,000, respectively, agree to admit two new partners to their business on April 1, 20--. Carlos Sanchez will buy 1/4 of Haggerdorf's equity interest for $20,000 and 1/3 of Lee's equity interest for $25,000 directly from the partners. Carmen Della will invest $30,000 in the business for which she is to receive a $30,000 equity interest.Required:

a.Prepare general journal entries showing the above transactions admitting Sanchez and Della to the partnership.b.Calculate the ending capital balances for all four partners after the above transactions.?
           GENERAL JOURNAL
Page 1
Date
Description
PostRef.
Debit
Credit
                                    

What will be an ideal response?


a.

GENERAL JOURNALPage 1
Date
?DescriptionPost
Ref.

Debit
?CreditApr. 1Yon Haggerdorf, Capital 20,000.00   Sue Lee, Capital 20,000.00      Carlos Sanchez, Capital  40,000.00        1Cash 30,000.00      Carmen Della, Capital  30,000.00
b. Ending capital balances as of April 1, 20--. Carmen Della  30,000 Yon Haggerdorf  60,000 Sue Lee  40,000 Carlos Sanchez  40,000

Business

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