Reed, Sharp, and Tucker Were Partners with Capital Account Balances

question 10

Essay

Reed, Sharp, and Tucker were partners with capital account balances of $80,000, $100,000, and $70,000, respectively.They agreed to admit Upton to the partnership.Upton purchased 30% of each partner's interest, with payments directly to Reed, Sharp, and Tucker of $32,000, $40,000, and $28,000, respectively.Before the admission of Upton, the profit and loss sharing ratio was 2:3:2.The partners agreed to use the book value method to account for the admission of Upton to the partnership.
Required:
Prepare the journal entry to record the admission of Upton to the partnership.

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Definitions:

Muscular Tissue

A tissue composed of fibers accountable for producing force and motion in the body, including movement of organs and the body itself.

Specialized to Contract

Describes cells or tissues, such as muscle cells, that are adapted to shorten or generate force, playing a crucial role in movement and support.

Inflammation

A biological response to injury or infection, involving the mobilization of immune cells and substances to protect the body.

Blood Vessels

Tubular structures carrying blood through the tissues and organs; a part of the circulatory system.