A and B are partners with initial investment of $60,000 and $40,000 respectively. They share income and loss by 60% for A and 40% for B. They accepted C as a new partner in the partnership. Required: Record the admission of C under each of the following separate assumptions: (1) C purchased one-half of A's interest for $35,000 cash (2) C invests cash of $40,000 in the partnership and receives 25% ownership interest in the new partnership. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE BETWEEN NUMBERS Dr Cash 100000 Cr. Land 100000

A and B are partners with initial investment of $60,000 and $40,000 respectively. They share income and loss by 60% for A and 40% for B. They accepted C as a new partner in the partnership. Required: Record the admission of C under each of the following separate assumptions: (1) C purchased one-half of A's interest for $35,000 cash (2) C invests cash of $40,000 in the partnership and receives 25% ownership interest in the new partnership. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE BETWEEN NUMBERS Dr Cash 100000 Cr. Land 100000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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