Homework Help is Here – Start Your Trial Now!
Business
Accounting
Brook and Hook have a partnership firm. Brook's capital is $100,000 and Hook's capital is $70,000. They share profit and loss 3:2. Ray is admitted as a new partner with a contribution of $30,000 for a 25% interest. The journal entry for the admission of Ray to the partnership includes: A) Debit to cash $50,000; Credit Brook Capital $12,000; Credit Hook Capital $8,000 B) Debit cash $30,000; Debit Brook Capital $12,000; Credit Ray Capital $50,000 C) Debit cash $50,000; Credit Ray Capital $3

Brook and Hook have a partnership firm. Brook's capital is $100,000 and Hook's capital is $70,000. They share profit and loss 3:2. Ray is admitted as a new partner with a contribution of $30,000 for a 25% interest. The journal entry for the admission of Ray to the partnership includes: A) Debit to cash $50,000; Credit Brook Capital $12,000; Credit Hook Capital $8,000 B) Debit cash $30,000; Debit Brook Capital $12,000; Credit Ray Capital $50,000 C) Debit cash $50,000; Credit Ray Capital $3

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Brook and Hook have a partnership firm. Brook's capital is $100,000 and Hook's capital is $70,000. They share profit and loss 3:2. Ray is admitted as a new partner with a contribution of $30,000 for a 25% interest. The journal entry for the admission of Ray to the partnership includes:

A) Debit to cash $50,000; Credit Brook Capital $12,000; Credit Hook Capital $8,000

B) Debit cash $30,000; Debit Brook Capital $12,000; Credit Ray Capital $50,000

C) Debit cash $50,000; Credit Ray Capital $30,000

D) None of the above 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Tax Fundamentals
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS