Beta Co. capital balances are: Ace $30,000, Bly $25,000, and Gumpus $20,000. The partners share income equally.

Question:

Beta Co. capital balances are: Ace $30,000, Bly $25,000, and Gumpus $20,000. The partners share income equally. Rhoop is admitted to the firm by purchasing one-half of Gumpus’s interest for $13,000. Journalize the admission of Rhoop to the partnership.