Exercise 12-11 Admission of new partner LO P3 The Struter Partnership has total partners' equity of $680,000, which is made up of Main, Capital, $476,000, and Frist, Capital, $204,000. The partners share net income and loss in a ratio of 79% to Main and 21% 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 $170,000 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 $205,000 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 $140,000 for a 20% interest in the equity and a 20% share in any income and loss. Check my work (3) Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income and loss. View transaction list Journal entry worksheet A B C Record the admission of Adison with an investment of $170,000 for a 20% interest in the equity and a 20% share in any income and loss. Note: Enter debits before credits. Transaction +General Journal Debit Credit (1) Cash 170,000 Main, Capital 170,000 Clear entry View general journal Check my wa (3) Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income and loss. View transaction list Journal entry worksheet < B Record the admission of Adison with an investment of $205,000 for a 20% interest in the equity and a 20% share in any income and loss. Note: Enter debits before credits. Transaction (2) Cash Main, Capital Adison, Capital Frist, Capital General Journal Debit Credit 205,000 177,000 22,110 5,890 (3) Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income and loss. View transaction list Journal entry worksheet Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income and loss. Note: Enter debits before credits. Transaction General Journal Debit Credit (3) Cash 140,000 Main, Capital Adison, Capital Main, Capital 164,000 Record entry Clear entry View general journal