roblem #2 Admission by Purchase of Interest and Investment of Assets The capital accounts of Loida Cardenas and Christian San Jose have balances of P150,000 and P110,000, respectively. Daria Labalan and Helen Magada are to be admitted to the partnership. Labalan buys one- fifth of Cardenas'interest for P35,000 and one-fourth of San Jose's interest for P25,000. Magada contributes P70,000 cash to the partnership, for which she is to receive ownership equity of P70,000. Required: 1. Journalize the entries to record the admission of Labalan and Magada. 2. What are the capital balances of each partner after the admission of the new partners?

roblem #2 Admission by Purchase of Interest and Investment of Assets The capital accounts of Loida Cardenas and Christian San Jose have balances of P150,000 and P110,000, respectively. Daria Labalan and Helen Magada are to be admitted to the partnership. Labalan buys one- fifth of Cardenas'interest for P35,000 and one-fourth of San Jose's interest for P25,000. Magada contributes P70,000 cash to the partnership, for which she is to receive ownership equity of P70,000. Required: 1. Journalize the entries to record the admission of Labalan and Magada. 2. What are the capital balances of each partner after the admission of the new partners?

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter20: Corporations And Parterships

Section: Chapter Questions

Problem 55P

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