Gamma Co. capital balances are: Barr $30,000, Croy $25,000 and Eubank $22,000. The partners share income equally.

Question:

Gamma Co. capital balances are: Barr $30,000, Croy $25,000 and Eubank $22,000. The partners share income equally. Tovar is admitted to the firm by purchasing one-half of Eubank’s interest for $13,000. Journalize the admission of Tovar to the partnership.