Daggett Lamppin and Pendergast are partners who share profits and losses 50% 30% and 20% respectively. Their capital balances are $150000 $90000 and $60000 respectively.
Instructions
(a) Assume Sanford joins the partnership by investing $140000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment.
(b) Assume instead that Daggett leaves the partnership. Daggett is paid $170000 with a bonus to the retiring partner. Prepare the journal entry to record Daggett's withdrawal.

Question

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The Answer of Daggett Lamppin and Pendergast are partners who share profits and losses 50% 30% and 20% respectively. Their capital balances are $150000 $90000 and $60000 respectively.
Instructions
(a) Assume Sanford joins the partnership by investing $140000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment.
(b) Assume instead that Daggett leaves the partnership. Daggett is paid $170000 with a bonus to the retiring partner. Prepare the journal entry to record Daggett's withdrawal.

Daggett Lamppin and Pendergast Are Partners Who Share Profits and Losses