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Prepare necessary adjusting entries at December 31, 2020 to record the admiss partner D and the withdrawal of partner C. Show all calculations.

Prepare necessary adjusting entries at December 31, 2020 to record the admiss partner D and the withdrawal of partner C. Show all calculations.

FINANCIAL ACCOUNTING
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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Please answer Part B Please show work.

**Part B (2020)** a. On December 31, 2020, new partner D invests other assets into the partnership for a quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: - A: $200,000 - B: $180,000 - C: $190,000 Total: $570,000 Fair value of other assets from D: $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in full the balance in her capital account plus a bonus, contributed equally from the capital of A, B, and D. Bonus paid to C: $18,000 **Required:** 5. Prepare necessary adjusting entries at December 31, 2020, to record the admission of partner D and the withdrawal of partner C. Show all calculations.
Transcribed Image Text:**Part B (2020)** a. On December 31, 2020, new partner D invests other assets into the partnership for a quarter ownership interest. An equal amount of capital is contributed by A, B, and C to make up the difference. At December 31, 2020, the partners' capital balances are as follows: - A: $200,000 - B: $180,000 - C: $190,000 Total: $570,000 Fair value of other assets from D: $50,000 b. Immediately after this, partner C withdraws from the partnership. She is paid in full the balance in her capital account plus a bonus, contributed equally from the capital of A, B, and D. Bonus paid to C: $18,000 **Required:** 5. Prepare necessary adjusting entries at December 31, 2020, to record the admission of partner D and the withdrawal of partner C. Show all calculations.
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