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I need help with #2 on the Account Titles and the very last section. At April 30, partners' capital balances in Pharoah Company are G.
I need help with #2 on the Account Titles and the very last section.
At April 30, partners' capital balances in Pharoah Company are G. Donley $53,400, C. Lamar $45,000, and J. Pinkston $20,600. 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. Your answer is partially correct. Try again. 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.) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,400 in cash. (2) Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $15,800 in cash. (3) Terrell invests $60,800 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $41,000 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Titles and Explanation Debit Credit 1. J. Pinkston, Capital 10,300 J. Terrell, Capital 10,300 2. C. Lamar, Capital J. Terrell, Capital 3. Cash 60,800 G. Donley, Capital 3,430 C. Lamar, Capital 2,744 J. Pinkston, Capital 686 J. Terrell, Capital 53,940 4. Cash 41,000 G. Donley, Capital 3,500 C. Lamar, Capital 2,800 J. Pinkston, Capital 700 J. Terrell, Capital 48,000 Lamar's capital balance is $36,800 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? (1) Terrell's cash investment X (2) Bonus to new partner
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