Capital balances and profit-sharing percentages for the partnership of Man, Eme, and Fot partnership on January 1, 2021, are as follows: Man Capital (36%) 140,000 Eme Capital (24%) 100,000 Fot Capital (40%) 160,000 Total 400,000 On January 3, 2021, the partners agree to admit Box into the partnership for a 25% interest in the capital and earnings for his investment in the partnership of $120,000. Partnership assets are not to be revalued. Determine the capital balances of Man, Eme, Fot, and Box immediately after the admission of Box.
Capital balances and profit-sharing percentages for the partnership of Man, Eme, and Fot partnership on January 1, 2021, are as follows: Man Capital (36%) 140,000 Eme Capital (24%) 100,000 Fot Capital (40%) 160,000 Total 400,000 On January 3, 2021, the partners agree to admit Box into the partnership for a 25% interest in the capital and earnings for his investment in the partnership of $120,000. Partnership assets are not to be revalued. Determine the capital balances of Man, Eme, Fot, and Box immediately after the admission of Box.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Capital balances and profit-sharing percentages for the partnership of Man, Eme, and Fot partnership on January 1, 2021, are as follows:
Man Capital (36%) 140,000
Eme Capital (24%) 100,000
Fot Capital (40%) 160,000
Total 400,000
On January 3, 2021, the partners agree to admit Box into the partnership for a 25% interest in the capital and earnings for his investment in the partnership of $120,000. Partnership assets are not to be revalued.
Determine the capital balances of Man, Eme, Fot, and Box immediately after the admission of Box.
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