The following are the condensed balance sheets of G&N Partnership at August 30, 2016, atwhich date Ellery is to be admitted with a 30% interest in capital for an investment of 55,000.Book Value Cash $ 20,000 Other assets 503,000 Total assets $ 523,000 Current liabilities 54,000Non current liabilities 269,000 Gemmo, capital 120,000 Norma, capital 80,000 Total equities $523,000 Fair Value Cash $ 20,000 Other assets 417,000 Total assets 437,000 Current liabilities S54,000 Non current liabilities 275,000 Gemmo and Norma share profits at 60% and 40%,respectively. Required: Choose the correct answer with solution. 1. What will be the respectivecapital balances of Gemmo, Norma, and Ellery after the new partner's admission. a. $68,460,$45,640, $48,900 b. $48,900, $45,640, $68,460 c. S45,640, $68,460, S48,900 d. $64,860, $49,240,$48,900

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respectively. Required: Choose the correct answer with solution. 1. What will be the respective capital balances of Gemmo, Norma, and Ellery after the new partner's admission. 3. $68,460, $45,640, 548,900 b. S48,900, $45,640, S68,460 c. S45,640, S68,460, $48,900 d. $64,860, $49,240, $48,900

respectively. Required: Choose the correct answer with solution. 1. What will be the respective capital balances of Gemmo, Norma, and Ellery after the new partner's admission. 3. $68,460, $45,640, 548,900 b. S48,900, $45,640, S68,460 c. S45,640, S68,460, $48,900 d. $64,860, $49,240, $48,900

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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