Admission of a new partner by purchase of existing partnership interest Jacob and Kyle are partners in JK Construction Services. Their capital accounts are currently as follows: Jacob Kyle Total capital $460,000 340,000 $800,000 Jacob and Kyle share income equally. Partnership identifiable net assets are reported at amounts approximating fair value. Lester purchases a 20 percent interest in the partnership by paying Jacob and Kyle a total of $175,000 for 20 percent of each of their interests in the partnership. Required Record the addition of Lester to the partnership, using:

Admission of a new partner by purchase of existing partnership interest Jacob and Kyle are partners in JK Construction Services. Their capital accounts are currently as follows: Jacob Kyle Total capital $460,000 340,000 $800,000 Jacob and Kyle share income equally. Partnership identifiable net assets are reported at amounts approximating fair value. Lester purchases a 20 percent interest in the partnership by paying Jacob and Kyle a total of $175,000 for 20 percent of each of their interests in the partnership. Required Record the addition of Lester to the partnership, using:

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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