Darren Tolliver and Henry Watson, attorneys, operate a law practice. They would like to expand the expertise

Question:

Darren Tolliver and Henry Watson, attorneys, operate a law practice. They would like to expand the expertise of their firm. In anticipation of this, they have agreed to admit June Azua to the on January 1, 2016. The capital account balances on January 1, 2016, after revaluation of assets, are Tolliver, $170,000, and Watson, $150,000. Net income or net loss is shared equally.
Instructions
Prepare the entries in general journal form to record the admission of Azua to the on January 1, 2016, under each of the following independent conditions:
1. Tolliver sells one-half of his interest in the to Azua for $138,000 cash.
2. Tolliver sells one-half of his interest in the to Azua for $94,000 cash.
3. Azua invests $130,000 in the business for a 25 percent interest in the Azua invests $134,000 in the business for a 30 percent interest in the Based only on item 3, what percentage of total equity does each partner own?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...