Stanley Neal and Helen Jobe each have equity of $40,000.00 in an existing partnership. The partners share equally in all changes in equity. On August 1 of the current year, the existing partners agree to admit Greg Talbot with a one-third share of the total equity.

Instructions:
Journalize the transaction using page 14 of a cash receipts journal and page 7 of a general journal.

Transcribed Image Text:

Transaction: Aug. 1. Received cash from new partner, Greg Talbot, for a one-third equity in the business, $22,000.00. Existing equity is redistributed as follows: from Stanley Neal, $6,000.00; from Helen Jobe, $6,000.00. R116 and M25.