Chapter 12 homework question 7

The Struter Partnership has total partners' equity of $520,000, which is made up of Main, Capital, $364,000, and Frist, Capital, $156,000. The partners share net income and loss in a ratio of 75% to Main and 25% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss.

Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption.

(1) Record the admission of Adison with an investment of $130,000 for a 20% interest in the equity and a 20% share in any income and loss.

(2) Record the admission of Adison with an investment of $165,000 for a 20% interest in the equity and a 20% share in any income and loss.

(3) Record the admission of Adison with an investment of $100,000 for a 20% interest in the equity and a 20% share in any income and loss.

A B C Record the admission of Adison with an investment of $130,000 for a 20% interest in the equity and a 20% share in any income and loss. Note: Enter debits before credits. Journal entry worksheet A B C Record the admission of Adison with an investment of $165,000 for a 20% interest in the equity and a 20% share in any income and loss. Note: Enter debits before credits. \begin{tabular}{|c|l|c|c|} \hline Transaction & \multicolumn{1}{|c|}{ General Journal } & Debit & Credit \\ \hline(2) & Cash & & \\ \hline & Adison, Capital & & \\ \hline & Main, Capital & & \\ \hline & Frist, Capital & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} Journal entry worksheet Record the admission of Adison with an investment of $100,000 for a 20% interest in the equity and a 20% share in any income and loss. Note: Enter debits before credits. \begin{tabular}{|c|l|c|c|} \hline Transaction & \multicolumn{1}{|c|}{ General Journal } & Debit & Credit \\ \hline(3) & Cash & & \\ \hline & Main, Capital & & \\ \hline & Frist, Capital & & \\ \hline & Adison, Capital & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}