Prepare journal entries for admitting Partner DB and Partner T in to the partnership .

Question

Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $142,000 and $102,400, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $32,700 and one-fourth of Chou’s interest for $22,500. Clarke contributes $34,600 cash to the partnership, for which she is to receive an ownership equity of $34,600. a1. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank. a2. Journalize the entry to record the admission of Clarke. b. What are the capital balances of each partner after the admission of the new partners? Partner Capital Balance Trent Henry $ Tim Chou $ LeAnne Gilbert $ Becky Clarke $

Answer 1

Question

Chapter 19, Problem 4SEA

1.

To determine

Prepare journal entries for admitting Partner DB and Partner T in to the partnership.

2.

To determine

Calculate the ending capital balances of all four partners after the transaction.

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Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $142,000 and $102,400, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $32,700 and one-fourth of Chou’s interest for $22,500. Clarke contributes $34,600 cash to the partnership, for which she is to receive an ownership equity of $34,600. a1. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank. a2. Journalize the entry to record the admission of Clarke. b. What are the capital balances of each partner after the admission of the new partners? Partner Capital Balance Trent Henry $ Tim Chou $ LeAnne Gilbert $ Becky Clarke $

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