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At April 30, partners' capital balances in PDL Company are G. Donley $55,000, C. Lamar $47, 200, and J. Pinkston $21, 600. The income sharing
At April 30, partners' capital balances in PDL Company are G. Donley $55,000, C. Lamar $47, 200, and J. Pinkston $21, 600. 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.) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16, 400 in cash. Terrell purchases 33^1/3% of Lamar's ownership interest by paying Lamar $15,000 in cash. Terrell invests $61, 400 for a 30% ownership interest, and bonuses are given to the old partners. Terrell invests $43, 400 for a 30% ownership interest, which includes a bonus to the new partner. Lamar's capital balance is $32, 800 after 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? Terrell's cash investment Bonus to new partner
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