S. Pagan and T. Tabor share income on a 6:4 basis. They have capital balances of $100,000
Question:
S. Pagan and T. Tabor share income on a 6:4 basis. They have capital balances of $100,000 and $60,000, respectively, when W. Wolford is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of W. Wolford under each of the following assumptions.
(a) Investment of $90,000 cash for a 30% ownership interest with bonuses to the existing partners.
(b) Investment of $50,000 cash for a 30% ownership interest with a bonus to the new partner.
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Step by Step Answer:
a Cash 90000 S Pagon Capital 610 X 15000 9000 T Tabor Capital 410 X 15000 6000 W Wolford ...View the full answer
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Related Book For 
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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