Frodo, Sam, Merry, and Pippen are in a partnership together and have a combined capital balance of $700,000. A new partner, Bilbo, pays the partnership $100,000 directly for a 1/5 interest in the new partnership. The partnership chooses the bonus method to the new partner to account for this transaction and will allocate any bonus evenly fro, the existing partners. What the journal entry on the books of the partnership to account for this transaction would be ?

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Journal Entry of the partnership to ... View the full answer