Biz Partnership allows partner Mandy to sell her $100,000 equity in the partnership to Brittney. Brittney pays Mandy $85,000. Record the partnership’s journal entry for the sale of Mandy’s interest to Brittney on September 30.

Biz Partnership allows partner Mandy to sell her $100,000 equity in the partnership to Brittney. Brittney pays Mandy $85,000. Record the partnership’s journal entry for the sale of Mandy’s interest to Brittney on September 30.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 7Q: On February 3, 2016 Sam Singh invested $90,000 cash for a 1/3 interest in a newly formed...

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Question

Biz Partnership allows partner Mandy to sell her $100,000 equity in the partnership to Brittney. Brittney
pays Mandy $85,000. Record the partnership’s journal entry for the sale of Mandy’s interest to Brittney on
September 30.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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