Admitting New Partners Jeff Bowman and Kristi Emery, who have ending capital balances of $104,000 and $63,000, respectively, agree to admit two new partners to their business on August 18, 20--. Dan Bridges will buy one-fifth of Bowman's capital interest for $30,800 and one- fourth of Emery's capital interest for $32,000. Payments will be made directly to the partners. Anna Terrell will invest $62,800 in the business, for which she will receive a $62,800 capital interest. 1. Prepare general journal entries showing the transactions admitting Bridges and Terrell to the partnership. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Aug. 18 3 5 Aug. 18 7. 2. Calculate the ending capital balances of all four partners after the transactions. Ending Capital Balances 3. Bowman K. Emery D. Bridges A. Terrell

Admitting New Partners Jeff Bowman and Kristi Emery, who have ending capital balances of $104,000 and $63,000, respectively, agree to admit two new partners to their business on August 18, 20--. Dan Bridges will buy one-fifth of Bowman's capital interest for $30,800 and one- fourth of Emery's capital interest for $32,000. Payments will be made directly to the partners. Anna Terrell will invest $62,800 in the business, for which she will receive a $62,800 capital interest. 1. Prepare general journal entries showing the transactions admitting Bridges and Terrell to the partnership. Page: 1 DOC. POST. DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- Aug. 18 3 5 Aug. 18 7. 2. Calculate the ending capital balances of all four partners after the transactions. Ending Capital Balances 3. Bowman K. Emery D. Bridges A. Terrell

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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