At April 30, partners' capital balances in Sandhill Company are G. Donley $50,960, C. Lamar $47,040, and J. Pinkston $17,640. 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) Your answer is 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 $15,680 in cash. ཊུས (2) Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $14,700 in cash. (3) Terrell invests $60,760 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $41,160 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 Debit 8,820 15,680 Credit 8,820
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
I am going to post this for the 5th time. The last five I posted were wrong on Part B Question 2 for Bonus to new partner. 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.) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $15,680 in cash. (2) Terrell purchases 3313% of Lamar's ownership interest by paying Lamar $14,700 in cash. (3) Terrell invests $60,760 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $41,160 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Titles and Explanation Debit Credit J. Pinkston, Capital 8,820 J. Terrell, Capital C. Lamar, Capital 15,680 J. Terrell, Capital Cash 60,760 J. Terrell, Capital (b) Your answer is partially correct. Lamar's capital balance is $31,360 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 $
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