Exercise 12-11 (Algo) Admission of new partner LO P3The Struter Partnership has total partners' equity of $420,000, which is made up of Main, Capital, $294,000, and Frist, Capital,$126,000. The partners share net income and loss in a ratio of 72% to Main and 28% to Frist. On November 1, Adison is admitted to thepartnership and given a 20% interest in equity and a 20% share in any income and loss.Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and lossunder independent assumption.(1) Record the admission of Adison with an investment of $105,000 for a 20% interest in the equity and a 20% share in any income andloss.(2) Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income andloss.(3) Record the admission of Adison with an investment of $75,000 for a 20% interest in the equity and a 20% share in any income andloss.NoABCTransaction(1)(2)(3)CashAdison, CapitalCashMain, CapitalFrist, CapitalAdison, CapitalCashMain, CapitalFrist, CapitalAdison, CapitalX Answer is not complete.General Journal333333Debit105,000140,00075,000Credit105,000620,1607,840112,00017,2806,720 X51,000

The incorporation of a new member into an established partnership is known as the admission of a…

Answered: Prepare journal entries to record the…

Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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