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:

Excise Tax

A tax imposed on the sale of specific goods or services, such as tobacco, alcohol, and gasoline, often with the aim of reducing their consumption.

Antigens

Substances that the immune system recognizes as foreign or dangerous, triggering an immune response.

Phagocytes

White blood cells that engulf and digest cellular debris, foreign substances, microbes, and cancer cells in a process known as phagocytosis.

Antibodies

Proteins in the blood that identify and neutralize foreign substances like bacteria and viruses.