Lemon and Parks Are Partners

question 37

Essay

Lemon and Parks are partners. On October 1, Lemon's capital balance is $75,000, and Parks' capital balance is $125,000. With the partnership's approval, Parks sells ½ of his partnership interest to Tambling for $70,000. Prepare the journal entry to record this transaction in the partnership records.

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Definitions:

Personal Service

Customized assistance or work performed directly for an individual rather than for a mass of consumers or organization.

LLC

Limited Liability Company; a business structure in the United States that provides the owners with limited liability protection, while offering the tax benefits of a partnership.

Register

To record or enroll formally, especially in a list, database, or book, or the part of the brain that deals with speech and language processing.

Paperwork

Generally involves the handling, processing, or managing of documents and forms required in the administration of business, legal, or other official activities.