A partnership has total equity of $485,000. Partnership equity consists of Green, Capital, $338,000, and Tan, Capital, $147,000. Net income and loss is shared in a ratio of 82% to Green and 18% to Tan. On December 1, the partnership accepts Brown as a new partner. Record the entry for Brown's admission under each separate situation. 1. Record the admission assuming Brown makes an investment of $125,000 cash for a 20% interest in equity and a 20% share of any income or loss. 2. Record the admission assuming Brown makes an investment of $175,000 cash for a 20% interest in equity and a 20% share of any income or loss. 3. Record the admission assuming Brown makes an investment of $87,500 cash for a 20% interest in equity and a 20% share in any income or loss. View transaction list Journal entry worksheet < A B C Record the admission assuming Brown makes an investment of $125,000 cash for a 20% interest in equity and a 20% share of any income or loss. Note: Enter debits before credits. Transaction (1) General Journal Debit Credit View general journal Record entry Clear entry
A partnership has total equity of $485,000. Partnership equity consists of Green, Capital, $338,000, and Tan, Capital, $147,000. Net income and loss is shared in a ratio of 82% to Green and 18% to Tan. On December 1, the partnership accepts Brown as a new partner. Record the entry for Brown's admission under each separate situation. 1. Record the admission assuming Brown makes an investment of $125,000 cash for a 20% interest in equity and a 20% share of any income or loss. 2. Record the admission assuming Brown makes an investment of $175,000 cash for a 20% interest in equity and a 20% share of any income or loss. 3. Record the admission assuming Brown makes an investment of $87,500 cash for a 20% interest in equity and a 20% share in any income or loss. View transaction list Journal entry worksheet < A B C Record the admission assuming Brown makes an investment of $125,000 cash for a 20% interest in equity and a 20% share of any income or loss. Note: Enter debits before credits. Transaction (1) General Journal Debit Credit View general journal Record entry Clear entry
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Transcribed Image Text:A partnership has total equity of $485,000. Partnership equity consists of Green, Capital, $338,000, and Tan, Capital, $147,000. Net
income and loss is shared in a ratio of 82% to Green and 18% to Tan. On December 1, the partnership accepts Brown as a new partner.
Record the entry for Brown's admission under each separate situation.
1. Record the admission assuming Brown makes an investment of $125,000 cash for a 20% interest in equity and a 20% share of
any income or loss.
2. Record the admission assuming Brown makes an investment of $175,000 cash for a 20% interest in equity and a 20% share of
any income or loss.
3. Record the admission assuming Brown makes an investment of $87,500 cash for a 20% interest in equity and a 20% share in any
income or loss.
View transaction list
Journal entry worksheet
<
A
B
C
Record the admission assuming Brown makes an investment of $125,000 cash
for a 20% interest in equity and a 20% share of any income or loss.
Note: Enter debits before credits.
Transaction
(1)
General Journal
Debit
Credit
View general journal
Record entry
Clear entry
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