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Please just the first section not the withdrawal and include the calculations in the calculation area including the bonus to then new partner etc. also
Please just the first section not the withdrawal and include the calculations in the calculation area including the bonus to then new partner etc. also i would like to add the last time i asked for help the answers were incorrect so i hope i can get some help this time
At April 30, partners' capital balances in the ELM Company are as follows: V. Easi, $49,000; K. Lester, $24,000; and W. Matt, $17,000. The income-sharing ratios are 3:2:1, respectively. On May 1 , the ELMO Company is formed by admitting N. Ortiz to the firm as a partner. Journalize the admission of Ortiz under each of the following assumptions. SHOW your calculations! 1. Ortiz purchases 50% of Matt's ownership interest by paying Matt $9,000 cash. 2. Ortiz purchases 50% of Lester's ownership interest by paying Lester $16,000 cash. 3. Ortiz invests $35,000 cash in the partnership for a 40% ownership interest that includes a bonus to the new partner. 4. Ortiz invests $30,000 in the partnership for a 15% ownership interest. Bonuses are given to the old partners. Withdrawal journal entries: On December 31, the capital balances and income ratios in the ART Company are as follows: Journalize the withdrawal of Tower under each of the following assumptions. SHOW your calculations! (HINT: Once Tower leaves the partnership, the income sharing ratio does not equal 100% ): 1. Each of the remaining partners agrees to pay $12,000 cash from personal funds to purchase Tower's ownership equity. Each receives 50% of Tower's equity. 2. Ross agrees to purchase Tower's ownership interest for $18,000 cash. 3. From partnership assets, Tower is paid $29,000, which includes a bonus to him. 4. Tower is paid $17,000 from partnership assets, and bonuses to the remaining partners are recognizedStep by Step Solution
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