5 Donovan invests $60,000 for a 30% interest in a partnership in which the old partners have capital totaling $90,000 before admitting Donovan. After distribution of any bonus, what is Donovan’s capital balance? 6. Alex and Bret are partners who share profits and losses in a ratio of 3:1 and have capital balances of $75,000 and $150,000, respectively. They agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35% interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is Debit Cash $75,000 credit Carmen, Capital $75,000 Debit Cash $105,000 credit Carmen, Capital $105,000 Debit Cash $75,000 debit Alex, Capital $22,500 debit Bret, Capital $7,500 credit Carmen, Capital $105,000 Debit Cash $105,0000 credit Alex, Capital $22,500 credit Bret, Capital $7,500 credit Carmen, Capital $75,000
5 Donovan invests $60,000 for a 30% interest in a partnership in which the old partners have capital totaling $90,000 before admitting Donovan. After distribution of any bonus, what is Donovan’s capital balance? 6. Alex and Bret are partners who share profits and losses in a ratio of 3:1 and have capital balances of $75,000 and $150,000, respectively. They agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35% interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is Debit Cash $75,000 credit Carmen, Capital $75,000 Debit Cash $105,000 credit Carmen, Capital $105,000 Debit Cash $75,000 debit Alex, Capital $22,500 debit Bret, Capital $7,500 credit Carmen, Capital $105,000 Debit Cash $105,0000 credit Alex, Capital $22,500 credit Bret, Capital $7,500 credit Carmen, Capital $75,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5 Donovan invests $60,000 for a 30% interest in a
6. Alex and Bret are partners who share
-
- Debit Cash $75,000 credit Carmen, Capital $75,000
- Debit Cash $105,000 credit Carmen, Capital $105,000
- Debit Cash $75,000 debit Alex, Capital $22,500 debit Bret, Capital $7,500 credit Carmen, Capital $105,000
- Debit Cash $105,0000 credit Alex, Capital $22,500 credit Bret, Capital $7,500 credit Carmen, Capital $75,000
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