The capital accounts of Barbara Shaw and Jane O'Halloran have balances of $120,000 and $100,000, respectively. Juan

Question:

The capital accounts of Barbara Shaw and Jane O'Halloran have balances of $120,000 and $100,000, respectively. Juan Rohon and Marco Galen are to be admitted to the partnership. Rohon buys one-fifth of Shaw's interest for $40,000 and one-fourth of O'Halloran's interest for $30,000. Galen contributes $50,000 cash to the partnership, for which he is to receive an ownership equity of $50,000.
a. Journalize the entries to record the admission of
(1) Rohon
(2) Galen.
b. What are the capital balances of each partner after the admission of the new partners?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Volume 2

ISBN: 978-0176509743

2nd Canadian edition

Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren

Question Posted: