Hancock, McCabe, and Johnson are considering adding Ken Sacchetti as a new partner. On Jul...

Hancock, McCabe, and Johnson are considering adding Ken Sacchetti as a new partner. On July 31 of the current year, the capital accounts of the three existing partners and their shares of profits and losses are as follows:

Requirements

Journalize the admission of Sacchetti as a partner on July 31 for each of the following independent situations:

1. Sacchetti pays Johnson $144,000 cash to purchase Johnson’s interest in the partnership.

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2. Sacchetti invests $72,000 in the partnership, acquiring a 1/4 interest in the business.

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3. Sacchetti invests $72,000 in the partnership, acquiring a 1/6 interest in the business.

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4. Sacchetti invests $72,000 in the partnership, acquiring a 1/3 interest in the business.