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The Struter Partnership has total partners' equity of $540,000, which is made up of Main, Capital, $378,000, and Frist, Capital, $162,000. The partners share net
The Struter Partnership has total partners' equity of $540,000, which is made up of Main, Capital, $378,000, and Frist, Capital, $162,000. The partners share net income and loss in a ratio of 73% to Main and 27% 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 $135,000 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 $170,000 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 $105,000 for a 20% interest in the equity and a 20% share in any income and loss.
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