Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At April 30, partners? capital balances in PDL Company are: G. Donley $51,400, C. Lamar $50,100, and J. Pinkston $15,200. The income sharing ratios are

image text in transcribed

At April 30, partners? capital balances in PDL Company are: G. Donley $51,400, C. Lamar $50,100, and J. Pinkston $15,200. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT partner. Company is formed by admitting J. Terrell to the firm as 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.) (1) Terrell purchases 50% of Pinkston?s ownership interest by paying Pinkston $16,140 in cash. (2) Terrell purchases 331/3% of Lamar?s ownership interest by paying Lamar $15,450 in cash. (3) Terrell invests 563,100 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests 543,500 for a 30% ownership interest, which includes a bonus to the new partner. Lamar?s capital balance is $31,570 after admitting Terrell to the partnership by investment. If Lamar?s ownership interest is 20% of total partnership capital, what were Terrell?s cash investment and the Terrell?s cash investment $ Bonus to new partner $ bonus to the new partner

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Internal Auditing

Authors: Manuel E. Peña-Rodríguez

1st Edition

1736742922, 978-1736742921

More Books

Students also viewed these Accounting questions

Question

Methods of Delivery Guidelines for

Answered: 1 week ago