Phil Phoenix and Tim Tucson are partners in an electrical repair business. Their respective capital balances are $92,800 and $48,100, and they share profits and losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process they elect to admit Don Dallas into the partnership.Prepare the journal entry to record the admission of Don Dallas into the partnership under each of the following conditions:1. Don acquires one-fourth of Phil’s capital interest by paying $28,900 directly to him.2. Don acquires one-fifth of each of Phil’s and Tim’s capital interests. Phil receives $24,500 and Tim receives $15,300 directly from Don.3. Don acquires a one-fifth capital interest for a $58,200 cash investment in the partnership. Total capital after the admission is to be $199,100.4. Don invests $39,820 for a one-fifth interest in partnership capital. Implicit goodwill is to be recorded.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)No.Account Titles and ExplanationDebitCredit1. 2. 3. 4. (To record implicit goodwill) (To record investment by Don)

"Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Answered: Phil Phoenix and Tim Tucson are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Phil Phoenix and Tim Tucson are partners in an electrical repair business. Their respective capital balances are $92,800 and $48,100, and they share profits and losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process they elect to admit Don Dallas into the partnership.

Prepare the journal entry to record the admission of Don Dallas into the partnership under each of the following conditions:

1.		Don acquires one-fourth of Phil’s capital interest by paying $28,900 directly to him.
2.		Don acquires one-fifth of each of Phil’s and Tim’s capital interests. Phil receives $24,500 and Tim receives $15,300 directly from Don.
3.		Don acquires a one-fifth capital interest for a $58,200 cash investment in the partnership. Total capital after the admission is to be $199,100.
4.		Don invests $39,820 for a one-fifth interest in partnership capital. Implicit goodwill is to be recorded.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
1.

2.


3.



4.


	(To record implicit goodwill)


	(To record investment by Don)

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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