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At April 30, partners' capital balances in Cullumber Company are G. Donley $66,560, C. Lamar $61,440, and J. Pinkston $23,040. 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. (a) 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, eg 5,275) (2) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $20,480 in cash Terrell purchases 33% of Lamar's ownership interest by paying Lamar $19,200 in cash Terrell invests $79,360 for a 30% ownership interest, and bonuses are given to the old partners. Terrell invests $53,760 for a 30% ownership interest, which includes a bonus to the new partner. (3) (4) No. Account Titles and Explanation 1. 2. 3. I Debit Credit 0000000000⁰⁰

At April 30, partners' capital balances in Cullumber Company are G. Donley $66,560, C. Lamar $61,440, and J. Pinkston $23,040. 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. (a) 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, eg 5,275) (2) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $20,480 in cash Terrell purchases 33% of Lamar's ownership interest by paying Lamar $19,200 in cash Terrell invests $79,360 for a 30% ownership interest, and bonuses are given to the old partners. Terrell invests $53,760 for a 30% ownership interest, which includes a bonus to the new partner. (3) (4) No. Account Titles and Explanation 1. 2. 3. I Debit Credit 0000000000⁰⁰

FINANCIAL ACCOUNTING
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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At April 30, partners' capital balances in Cullumber Company are G. Donley $66,560, C, Lamar $61,440, and J. Pinkston $23,040. 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. (a) 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 0 decimal places, e.g. 5,275) (2) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $20,480 in cash. Terrell purchases 33¹/ 5% of Lamar's ownership interest by paying Lamar $19.200 in cash. Terrell invests $79,360 for a 30% ownership interest, and bonuses are given to the old partners. Terrell invests $53,760 for a 30% ownership interest, which includes a bonus to the new partner. (3) (4) No. Account Titles and Explanation 4. 1. 2. 3. I Debit Credit
Transcribed Image Text:At April 30, partners' capital balances in Cullumber Company are G. Donley $66,560, C, Lamar $61,440, and J. Pinkston $23,040. 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. (a) 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 0 decimal places, e.g. 5,275) (2) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $20,480 in cash. Terrell purchases 33¹/ 5% of Lamar's ownership interest by paying Lamar $19.200 in cash. Terrell invests $79,360 for a 30% ownership interest, and bonuses are given to the old partners. Terrell invests $53,760 for a 30% ownership interest, which includes a bonus to the new partner. (3) (4) No. Account Titles and Explanation 4. 1. 2. 3. I Debit Credit
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