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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.

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.

Accounting (Text Only)
Accounting (Text Only)
26th Edition
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter12: Accounting For Partnerships And Limited Liability Companies
Section: Chapter Questions
Problem 12.15EX
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Exercise 12-11 (Algo) Admission of new partner LO P3 The Struter Partnership has total partners' equity of $420,000, which is made up of Main, Capital, $294,000, and Frist, Capital, $126,000. The partners share net income and loss in a ratio of 72% to Main and 28% 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 $105,000 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 $140,000 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 $75,000 for a 20% interest in the equity and a 20% share in any income and loss. No A B C Transaction (1) (2) (3) Cash Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital X Answer is not complete. General Journal 33 3333 Debit 105,000 140,000 75,000 Credit 105,000 6 20,160 7,840 112,000 17,280 6,720 X 51,000
Transcribed Image Text:Exercise 12-11 (Algo) Admission of new partner LO P3 The Struter Partnership has total partners' equity of $420,000, which is made up of Main, Capital, $294,000, and Frist, Capital, $126,000. The partners share net income and loss in a ratio of 72% to Main and 28% 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 $105,000 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 $140,000 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 $75,000 for a 20% interest in the equity and a 20% share in any income and loss. No A B C Transaction (1) (2) (3) Cash Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital X Answer is not complete. General Journal 33 3333 Debit 105,000 140,000 75,000 Credit 105,000 6 20,160 7,840 112,000 17,280 6,720 X 51,000
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