Question
The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint
The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys one-fifth of Hopes interest for $30,000 and one-fourth of Indianas interest for $20,000. Casey contributes $45,000 cash to the partnership, for which he is to receive ownership equity of $45,000. Required: (1) Journalize the entries to record the admission of (a) Clint and (b) Casey. Refer to the Chart of Accounts for exact wording of account titles. (2) What are the capital balances of each partner after the admission of the new partners?
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