12-4A

At April 30, partners' capital balances in PDL Company are G. Donley $51,000, C. Lamar $46,000, and J. Pinkston $17,200. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner.

Journalize the admission of Terrell under each of the following independent assumptions.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)

(1)Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $15,200in cash.(2)Terrell purchases 33¹/₃% of Lamar's ownership interest by paying Lamar $14,600in cash.(3)Terrell invests $62,000for a 30% ownership interest, and bonuses are given to the old partners.(4)Terrell invests $42,200for a 30% ownership interest, which includes a bonus to the new partner.

No.

Account Titles and Explanation

Debit

Credit

1.

C. Lamar, Capital

Cash

J. Pinkston, Capital

Accounts Receivable

G. Donley, Capital

Accounts Payable

Salaries Expense

Distributions

J. Terrell, Capital

Salaries Expense

Distributions

C. Lamar, Capital

Cash

J. Terrell, Capital

J. Pinkston, Capital

G. Donley, Capital

Accounts Receivable

Accounts Payable

2.

J. Pinkston, Capital

J. Terrell, Capital

C. Lamar, Capital

Cash

Distributions

G. Donley, Capital

Accounts Receivable

Accounts Payable

Salaries Expense

Salaries Expense

J. Terrell, Capital

J. Pinkston, Capital

C. Lamar, Capital

Cash

G. Donley, Capital

Accounts Receivable

Accounts Payable

Distributions

3.

C. Lamar, Capital

Cash

G. Donley, Capital

J. Pinkston, Capital

J. Terrell, Capital

Distributions

Accounts Receivable

Accounts Payable

Salaries Expense

G. Donley, Capital

J. Pinkston, Capital

J. Terrell, Capital

Accounts Receivable

Accounts Payable

Cash

C. Lamar, Capital

Salaries Expense

Distributions

Accounts Payable

J. Pinkston, Capital

Distributions

C. Lamar, Capital

J. Terrell, Capital

Cash

Salaries Expense

G. Donley, Capital

Accounts Receivable

Salaries Expense

Distributions

Cash

G. Donley, Capital

J. Pinkston, Capital

J. Terrell, Capital

Accounts Receivable

C. Lamar, Capital

Accounts Payable

J. Pinkston, Capital

Cash

G. Donley, Capital

Accounts Receivable

Accounts Payable

Salaries Expense

J. Terrell, Capital

Distributions

C. Lamar, Capital

4.

C. Lamar, Capital

G. Donley, Capital

Distributions

Accounts Payable

Salaries Expense

Accounts Receivable

J. Terrell, Capital

J. Pinkston, Capital

Cash

Distributions

Accounts Receivable

C. Lamar, Capital

Accounts Payable

Cash

Salaries Expense

J. Terrell, Capital

J. Pinkston, Capital

G. Donley, Capital

J. Terrell, Capital

Distributions

J. Pinkston, Capital

C. Lamar, Capital

Cash

Salaries Expense

G. Donley, Capital

Accounts Receivable

Accounts Payable

J. Pinkston, Capital

C. Lamar, Capital

Cash

Accounts Payable

G. Donley, Capital

Accounts Receivable

Salaries Expense

J. Terrell, Capital

Distributions

J. Pinkston, Capital

C. Lamar, Capital

G. Donley, Capital

Accounts Receivable

Distributions

J. Terrell, Capital

Accounts Payable

Cash

Salaries Expense

LINK TO TEXT

Lamar's capital balance is $31,800after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20% of total partnership capital, what were (1) Terrell's cash investment and (2) the bonus to the new partner?

(1)Terrell's cash investment$

(2)Bonus to new partner$