Question
The Struter Partnership has total partners' equity of $580,000, which is made up of Main, Capital, $406,000, and Frist, Capital, $174,000. The partners share net
The Struter Partnership has total partners' equity of $580,000, which is made up of Main, Capital, $406,000, and Frist, Capital, $174,000. The partners share net income and loss in a ratio of 77% to Main and 23% to Frist. On November 1, Adison 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 Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption.
(1) Record the admission of Adison with an investment of $145,000 for a 20% interest in the equity and a 20% share in any income and loss.
(2) Record the admission of Adison with an investment of $180,000 for a 20% interest in the equity and a 20% share in any income and loss.
(3) Record the admission of Adison with an investment of $115,000 for a 20% interest in the equity and a 20% share in any income and loss.
| No | Transaction | General Journal | Debit | Credit |
|---|---|---|---|---|
| A | (1) | Cash | 145,000 | |
| Adison, Capital | ||||
| B | (2) | Cash | 180,000 | |
| Adison, Capital | ||||
| C | (3) | Cash | 115,000 |
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A One-Year Accounting Course Part 2
Authors: Trevor Gambling
1st Edition
0080130267, 9780080130262
