Question
The Struter Partnership has total partners' equity of $460,000, which is made up of Main, Capital, $322,000, and Frist, Capital, $138,000. The partners share net
The Struter Partnership has total partners' equity of $460,000, which is made up of Main, Capital, $322,000, and Frist, Capital, $138,000. The partners share net income and loss in a ratio of 77% to Main and 23% to Frist. On November 1, Madison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Madison for a 20% interest in the equity and a 20% share in any income and loss under the following independent assumptions. (1) Record the admission of Madison with an investment of $115,000 for a 20% interest in the equity and a 20% share in any income and loss. (2) Record the admission of Madison with an investment of $150,000 for a 20% interest in the equity and a 20% share in any income and loss. (3) Record the admission of Madison with an investment of $85,000 for a 20% interest in the equity and a 20% share in any income and loss.
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