3. Moe, Larry and Curly have capital accounts in the partnership of $60,000, $36,000, and $14,000 respectively, and share income and losses by 5:4:1. The partnership had agreed to admit Joe as a partner under the following independent assumptions. Prepare journal entries for each. a) Joe pays Curly $16,000 for 50% of Curly's interest. b) Joe pays Larry $15,000 for one-third of Larry's interest. c) Joe invests $60,000 into business for a 1/3 interest Watch out for 1/3, remember in decimal =.3333333333333 d) Joe invests $40,000 into business for a $30% interest.
3. Moe, Larry and Curly have capital accounts in the partnership of $60,000, $36,000, and $14,000 respectively, and share income and losses by 5:4:1. The partnership had agreed to admit Joe as a partner under the following independent assumptions. Prepare journal entries for each. a) Joe pays Curly $16,000 for 50% of Curly's interest. b) Joe pays Larry $15,000 for one-third of Larry's interest. c) Joe invests $60,000 into business for a 1/3 interest Watch out for 1/3, remember in decimal =.3333333333333 d) Joe invests $40,000 into business for a $30% interest.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. Moe, Larry and Curly have capital accounts in the partnership of $60,000, $36,000, and $14,000 respectively, and share income and losses by 5:4:1. The partnership had agreed to admit Joe as a partner under the following independent assumptions. Prepare
a) Joe pays Curly $16,000 for 50% of Curly's interest.
b) Joe pays Larry $15,000 for one-third of Larry's interest.
c) Joe invests $60,000 into business for a 1/3 interest Watch out for 1/3, remember in decimal =.3333333333333
d) Joe invests $40,000 into business for a $30% interest.
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