At April 30, partners' capital balances in Cullumber Company are G. Donley $55,120, C. Lamar $50,880, and J. Pinkston $19,080. The income sharing ratios are 5:4:1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner. 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. Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $15,900 in cash. (2) (3) (4) Terrell invests $65,720 for a 30% ownership interest, and bonuses are given to the old partners. 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 J. Terrell, Capital 2. C. Lamar, Capital J. Terrell, Capital 3. Cash G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital J. Terrell, Capital 4. Cash G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital J. Terrell, Capital Debit Credit
At April 30, partners' capital balances in Cullumber Company are G. Donley $55,120, C. Lamar $50,880, and J. Pinkston $19,080. The income sharing ratios are 5:4:1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner. 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. Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $15,900 in cash. (2) (3) (4) Terrell invests $65,720 for a 30% ownership interest, and bonuses are given to the old partners. 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 J. Terrell, Capital 2. C. Lamar, Capital J. Terrell, Capital 3. Cash G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital J. Terrell, Capital 4. Cash G. Donley, Capital C. Lamar, Capital J. Pinkston, Capital J. Terrell, Capital Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
answer must be in table format or i will give down vote
Transcribed Image Text:At April 30, partners' capital balances in Cullumber Company are G. Donley $55,120, C. Lamar $50,880, and J. Pinkston $19,080. The
income sharing ratios are 5:4:1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner.
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.
Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $15,900 in cash.
(2)
(3)
(4)
Terrell invests $65,720 for a 30% ownership interest, and bonuses are given to the old partners.
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
J. Terrell, Capital
2.
C. Lamar, Capital
J. Terrell, Capital
3.
Cash
G. Donley, Capital
C. Lamar, Capital
J. Pinkston, Capital
J. Terrell, Capital
4.
Cash
G. Donley, Capital
C. Lamar, Capital
J. Pinkston, Capital
J. Terrell, Capital
Debit
Credit
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