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At April 30, partners' capital balances in Blossom Company are G. Donley $64,480, C. Lamar $59,520, and J. Pinkston $22,320. The income sharing ratios
At April 30, partners' capital balances in Blossom Company are G. Donley $64,480, C. Lamar $59,520, and J. Pinkston $22,320. 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. (a) 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 O decimal places, e.g. 5,275.) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $19,840 in cash. (2) (3) Terrell purchases 33%/3% of Lamar's ownership interest by paying Lamar $18,600 in cash. Terrell invests $76,880 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $52,080 for a 30% ownership interest, which includes a bonus to the new partner.
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