partnership has total equity of $491,000. Partnership equity consists of Green, Capital, $342,000, and Tan, Capital, $149,000. Net income and loss is shared in a ratio of 85% to Green and 15% to Tan. On December 1, the partnership accepts Brown as a new partner. Record the entry for Brown's admission under each separate situation. Reco
partnership has total equity of $491,000. Partnership equity consists of Green, Capital, $342,000, and Tan, Capital, $149,000. Net income and loss is shared in a ratio of 85% to Green and 15% to Tan. On December 1, the partnership accepts Brown as a new partner. Record the entry for Brown's admission under each separate situation. Reco
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A partnership has total equity of $491,000. Partnership equity consists of Green, Capital, $342,000, and Tan, Capital, $149,000. Net income and loss is shared in a ratio of 85% to Green and 15% to Tan. On December 1, the partnership accepts Brown as a new partner. Record the entry for Brown's admission under each separate situation. Record the admission assuming Brown makes an investment of $127,000 cash for a 20% interest in equity and a 20% share of any income or loss. Record the admission assuming Brown makes an investment of $179,000 cash for a 20% interest in equity and a 20% share of any income or loss. Record the admission assuming Brown makes an investment of $88,500 cash for a 20% interest in equity and a 20% share in any income or loss.
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