Sandra Budd and Frank Elm Have a Partnership That Splits $$\begin{array} { | l | l | } \hline \text { Budd } & \$ 40,000 \\\hline \text { Elm } & \$ 70,000 \\\hline\end{array}$$

question 12

Essay

Sandra Budd and Frank Elm have a partnership that splits profits equally and that has become very successful.They are considering admitting a new partner,Sally Lee,for an equal share-a 1/3 interest in the new partnership.Based on the value of the partnership's business,they have negotiated an amount of $10,000,which Lee will invest to obtain a 1/3 share.The balances in the existing partner capital accounts are:
$$\begin{array} { | l | l | } \hline \text { Budd } & \$ 40,000 \\\hline \text { Elm } & \$ 70,000 \\\hline\end{array}$$ What journal entry would be made for Lee's investment and admittance to the new partnership?
$$\begin{array} { | l | l | l | } \hline & & \\\hline & & \\\hline & & \\\hline\end{array}$$

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Definitions:

Pathological Condition

Any state of disease or disorder in the body.

Destructive Tumor

A growth that invades and causes damage to surrounding tissues, often referred to as malignant or cancerous.

Anterior Pituitary

A gland located at the base of the brain that produces hormones regulating critical bodily functions, including growth and reproductive activities.

Adrenal Medullary Hormones

Hormones produced by the adrenal gland's medulla, such as adrenaline and noradrenaline, that are involved in stress responses.