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
Related questions
Question
3. Moe, Larry and Curly have capital accounts in the
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education