Question
Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of 171,000 and 72,000, respectively. Etter, with the consent of Santori, Sells one-third of her interest to Lonnie Davis.
A) what entry is required by the partnership if sales price is $50,000?
B) what entry is required by the partnership if the sales price is $70,000?

Please ignore checks and x’s...
a. What entry is required by the partnership if the sales price is $50,000 Cash between the two partners b. We ertry is moared by th, partnertip if the sales prce Cash x 870,000 but a private transaction between the two partners Parialy comc
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Answer #1

A)

Myles Etter, Capital 57,000

   Lonnie Davis, Capital 57,000

(171,000x1/3)

B)

Myles Etter, Capital 57,000

   Lonnie Davis, Capital 57,000

In both cases the Journal entry will be same.

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