Multiple Choice
Bobbi and Stuart are partners. The partnership capital of Bobbi is $40,000 and Stuart is $70,000. Bobbi sells his interest in the partnership to John for $50,000. The journal entry to record the admission of John as a new partner would include
A) a credit to John's capital for $40,000
B) a credit to Stuart's capital for $10,000
C) a credit John's capital for $50,000
D) a credit to John's capital for $40,000 and a credit to Stuart's capital for $10,000
Correct Answer:
Verified
Correct Answer:
Verified
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