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The capital accounts of Mike Cash and Ed Doerr have balance sheets of $56,000 and $100,000 respectively. Paula Goles and Julia Howel are going to
The capital accounts of Mike Cash and Ed Doerr have balance sheets of $56,000 and $100,000 respectively. Paula Goles and Julia Howel are going to be admitted to society. Goals buy 1/4 of Cash's interest for $22,000 and 1/5 of Doerr's interest for $30,000. Howel contributes $60,000 for which he will receive an interest of $60,000.
Requires:
A. Submit Journal entries to register the admission of new members.
B. What are the new capital balance sheets for each member after admission?
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