(b) Lamar's capital balance is $33,920 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20% of total partnership capital, what were (1) Terrell's cash investment and (2) the bonus to the new partner? (1) Terrell's cash investment $ (2) Bonus to new partner (a) Your answer is partially correct. Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,960 in cash. (2) Terrell purchases 33¹/3% of Lamar's ownership interest by paying Lamar $15,900 in cash. (3) Terrell invests $65,720 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $44,520 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Titles and Explanation 1. J. Pinkston, Capital 2. J. Terrell, Capital C. Lamar, Drawings 3. Cash J. Terrell, Capital G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital 4. G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital J. Terrell, Capital eTextbook and Media Debit Credit
(b) Lamar's capital balance is $33,920 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20% of total partnership capital, what were (1) Terrell's cash investment and (2) the bonus to the new partner? (1) Terrell's cash investment $ (2) Bonus to new partner (a) Your answer is partially correct. Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,960 in cash. (2) Terrell purchases 33¹/3% of Lamar's ownership interest by paying Lamar $15,900 in cash. (3) Terrell invests $65,720 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $44,520 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Titles and Explanation 1. J. Pinkston, Capital 2. J. Terrell, Capital C. Lamar, Drawings 3. Cash J. Terrell, Capital G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital 4. G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital J. Terrell, Capital eTextbook and Media Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:(b)
Lamar's capital balance is $33,920 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20%
of total partnership capital, what were (1) Terrell's cash investment and (2) the bonus to the new partner?
(1)
Terrell's cash investment
$
(2)
Bonus to new partner
Transcribed Image Text:(a)
Your answer is partially correct.
Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically
indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.)
(1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,960 in cash.
(2)
Terrell purchases 33¹/3% of Lamar's ownership interest by paying Lamar $15,900 in cash.
(3)
Terrell invests $65,720 for a 30% ownership interest, and bonuses are given to the old partners.
(4)
Terrell invests $44,520 for a 30% ownership interest, which includes a bonus to the new partner.
No. Account Titles and Explanation
1.
J. Pinkston, Capital
2.
J. Terrell, Capital
C. Lamar, Drawings
3.
Cash
J. Terrell, Capital
G. Donley, Capital
C. Lamar, Capital
J. Pinkston, Capital
4.
G. Donley, Capital
C. Lamar, Capital
J. Pinkston, Capital
J. Terrell, Capital
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