biz partnership allows partner mandy to sell her $105,000 equity in the partnership to brittney. brittney…
biz partnership allows partner mandy to sell her $105,000 equity in the partnership to brittney. brittney pays mandy $84,000. record the partnerships journal entry for the sale of mandys interest to brittney on september 30. view transaction list journal entry worksheet 1 record the admission of brittney as a partner who will pay mandy $84,000 for her share of equity of $105,000. note: enter debits before credits. date general journal debit credit september 30
Answer
Explanation:
Step1: Remove Mandy's equity
Debit Mandy's capital account for her equity amount of $105,000 as she is leaving the partnership. Debit: Mandy, Capital $105,000
Step2: Add Brittney as a partner
Credit Brittney's capital account for the amount she paid for the equity share, which is $84,000. The difference between Mandy's equity and the amount Brittney paid ($105,000 - $84,000 = $21,000) is a gain or loss that may need further accounting treatment depending on partnership agreements. Here we focus on the basic entry for the transfer. Credit: Brittney, Capital $84,000
Answer:
| Date | General Journal | Debit | Credit |
|---|---|---|---|
| September 30 | Mandy, Capital | $105,000 | |
| September 30 | Brittney, Capital | $84,000 |