Question
At September 30, 2021, C. Saber and J. Wong, the two partners of City Landscaping, had capital account balances of $ 25,000 each. D. Walker
At September 30, 2021, C. Saber and J. Wong, the two partners of City Landscaping, had capital account balances of $ 25,000 each. D. Walker joined the partnership on September 30, 2021 and received a 1/3 interest in the partnership in exchange for a capital contribution of $ 40,000.
For the year ended September 30, 2022, City Landscaping had profit of $ 126,000, which is allocated equally to the three partners. Withdrawals during the year were $ 18,000 each by Saber and Wong, and $ 14,000 by Walker.
Instructions
a) Record the transaction on September 30, 2021 admitting Walker into the partnership.
b) Calculate the balance of each partners capital account after the transaction.
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