Stephanie Simmons has a capital balance of $38,000; Emerson St. Mark’s balance is $20,000. Edward Haskins pays $140,000 to purchase St. Mark’s interest in the Simmons & St. Mark partnership. St. Mark receives the full $140,000.
1. Journalize the partnership’s transaction to admit Haskins to the partnership.
2. Must Simmons accept Haskins as a full partner? What rights does Haskins have after purchasing St. Mark’s interest in the partnership?