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On October 1, 2020, the partner's capital balances and the profit and loss
sharing ratio for Mandalorian Enterprises were as follows:
		CAPITAL	PROFIT &
	PARTNER	BALANCES	LOSS RATIO
	Alex	$96,000	1
	John	$26,000	2
	Travis	$134,000	5
Use the above information to answer Parts A and B below. Each of
these parts is independent from the other part.
PART A
On October 1, 2020 Travis convinces his partners to admit his young child
Grogu into the partnership.
(I) Prepare the journal entry to admit Mike into the partnership if Mike
uses personal funds and pays the partnership $75,000 for a 25% ownership.
(II) Prepare the journal entry to admit Mike if instead Mike pays $140,000
directly to John for half of Johns ownership interest.
PART B
Assume instead that on October 1, 2020 Alex decides to withdraw from
the partnership.
(I) Journalize the withdrawal of Alex if the partnership pays Alex
$56,000 cash.
(II) Journalize the withdrawal of Alex if the two remaining partners (John and
travis) use personal funds to buy Alex ownership interest. Assume they
each pay Alex $80,000 for half of Alex interest in the partnership.

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