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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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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