Dobson, Lancaster, and Pender are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $150,000, $90,000, and $60,000, respectively.
Instructions
(a) Assume Shannon joins the partnership by investing $120,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment.
(b) Assume instead that Dobson leaves the partnership. Dobson is paid $180,000 with a bonus to the retiring partner. Prepare the journal entry to record Dobson's withdrawal.

Question

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The Answer of Dobson, Lancaster, and Pender are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $150,000, $90,000, and $60,000, respectively.
Instructions
(a) Assume Shannon joins the partnership by investing $120,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment.
(b) Assume instead that Dobson leaves the partnership. Dobson is paid $180,000 with a bonus to the retiring partner. Prepare the journal entry to record Dobson's withdrawal.

Dobson, Lancaster, and Pender Are Partners Who Share Profits and Losses