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The part ners' capital (income-sharing ratio in parentheses) of Amar, Bilal, Cerna & Dema LLP on May 31, 2015, was as follows:
| Amar (20%) | $ 60,000 |
| Bilal (20%} | 80,000 |
| Cerna (20%} | 70,000 |
| Dema (40%) | 40,000 |
| Total partners' capital | S 250,000 |
| Required: | |
On May 31, 2015, with the consent of Amar, Bilal, and Dema:
- Cerna retired from the partnership and was paid $50,000 cash in full settlement of his interest in the part nership.
- Raed was admitted to the partnership with a $20,000 cash investment for a 10% interest in the net assets of Amar, Bilal, Dema & Raed LLP.
No goodwill was to be recognized for the foregoing events.
Prepare journal entries on May 31, 2015, to record the foregoing events.
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