Problem #1 Admission by Purchase of Interest The capital balance of the Song and Monte partnership on Sept. 30, 2011 were: Song, Capital (75% profit percentage) P140,000 Monte, Capital (25% profit percentage) 56,000 Total Capital P196,000 On Oct. 1, Pena was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P100, 000, paid directly to Song and Monte. Required: Determine the capital balances of Song, Monte and Pena after Pena's admission to the partnership.
Problem #1 Admission by Purchase of Interest The capital balance of the Song and Monte partnership on Sept. 30, 2011 were: Song, Capital (75% profit percentage) P140,000 Monte, Capital (25% profit percentage) 56,000 Total Capital P196,000 On Oct. 1, Pena was admitted to a 35% interest in the partnership when he purchased 35% of each existing partner's capital for P100, 000, paid directly to Song and Monte. Required: Determine the capital balances of Song, Monte and Pena after Pena's admission to the partnership.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.22E
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Problem #1
Admission by Purchase of Interest
The capital balance of the Song and Monte partnership on Sept. 30, 2011 were:
Song, Capital (75% profit percentage) P140,000
Monte, Capital (25% profit percentage) 56,000
Total Capital P196,000
On Oct. 1, Pena was admitted to a 35% interest in the partnership when he purchased 35% of each existing
partner's capital for P100, 000, paid directly to Song and Monte.
Required:
Determine the capital balances of Song, Monte and Pena after Pena's admission to the partnership.
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