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A. Athabasca and B. Leduc are partners with a profit sharing ratio of 2:1, respectively. A. Athabasca has a capital balance of $52,000 and
A. Athabasca and B. Leduc are partners with a profit sharing ratio of 2:1, respectively. A. Athabasca has a capital balance of $52,000 and B. Leduc has a capital balance of $43,000. On October 1, 2021, C. Stettler is admitted to the partnership. Instructions: a. Prepare the journal entry to record the admission of Stettler under each of the following independent assumptions: (i) Athabasca and Leduc admit Stettler to a 25% ownership in exchange for cash of $25,000. Stettler contributes the cash to the partnership. (ii) Athabasca and Leduc admit Stettler to a 50% ownership in exchange for cash of $80,000. Stettler contributes the cash to the partnership. Round amounts to the nearest dollar. Show ALL calculations for full marks.
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