At April 30, partners ' capital balances in DES Partners are Dexter $44,000, Emley $26,000, and Sigle $24,000 The profit sharing ratio is 5 3 2, respectively On May 1, the DESW Partnership is formed by admitting Watson to the firm as a partner with 20 equity Instructions Journalize the admission of...

a May 1 Cash 23500 Watson Capital 23500 Total capital of existing partnership 94000 Investment by Wa ...

At April 30, partners' capital balances in DES Partners are Dexter $44,000, Emley $26,000, and Sigle $24,000.

Question:

At April 30, partners' capital balances in DES Partners are Dexter $44,000, Emley $26,000, and Sigle $24,000. The profit-sharing ratio is 5:3:2, respectively. On May 1, the DESW is formed by admitting Watson to the firm as a partner with 20% equity.
Instructions
Journalize the admission of Watson under each of the following independent assumptions.
(a) Watson invests $23,500.
(b) Watson invests $35,000.
(c) Watson invests $10,000.
TAKING IT FURTHER
After joining the Watson developed concerns over unlimited liability. Watson is now aware that there are partnerships that modify this feature. Explain to Watson these other forms of Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...