Hadley Harris is admitted to the partnership of Reamey & Nedia. Prior to her admission, the partnership

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Hadley Harris is admitted to the partnership of Reamey & Nedia. Prior to her admission, the partnership books show Gabby Reamey's capital balance at $100,000 and Carlos Nedia's at $50,000. Assume Reamey and Nedia share profits and losses equally.
Requirements
1. Compute each partner's equity on the books of the new partnership under the following plans:
a. Harris pays $85,000 for Nedia's equity. Harris pays Nedia directly.
b. Harris contributes $50,000 to acquire a 1/4 interest in the partnership.
c.
Harris contributes $60,000 to acquire a 1/4 interest in the partnership.
2.
Journalize the entries for admitting the new partner under plans a, b, and c.
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...
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Horngrens Accounting

ISBN: 978-0133866889

11th edition

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

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