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Jack and Jill agree to admit Wilson to the partnership. Wilson makes $30,000 cash contribution to the partnership to receive 25% of total capital after
Jack and Jill agree to admit Wilson to the partnership. Wilson makes $30,000 cash contribution to the partnership to receive 25% of total capital after the contribution Before Wilson is admitted to the partnership, capital balances of Jack's and Jill's and their share of profit or loss are as follows. Partner Capital Balance Share in Profit or Loss Jack Jill 50,000 30,000 Total $ 80,000 60% 40% 100% a) Prepare a journal entry distributing the difference between Wilson's actual contribution and his recorded capital as a bonus based on the two existing partners profit-loss ratio. Show your work, too. (7 points)
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