S. Pagan and T. Tabor share income on a 7:3 basis. They have capital balances of $ 102,000 and $ 52,000, respectively, when W. Wolford is admitted to the partnership. Prepare the journal entry to record the admission of W. Wolford under each of the following assumptions. (a) Investment of $ 94,000 cash for a 30% ownership interest with bonuses to the existing partners. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
S. Pagan and T. Tabor share income on a 7:3 basis. They have capital balances of $ 102,000 and $ 52,000, respectively, when W. Wolford is admitted to the partnership. Prepare the journal entry to record the admission of W. Wolford under each of the following assumptions. (a) Investment of $ 94,000 cash for a 30% ownership interest with bonuses to the existing partners. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer question completely. This is one question with two parts so answer question fully ( part a and b)
Transcribed Image Text:(b)
Investment of $ 58,000 cash for a 30% ownership interest with a bonus to the new partner. (Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
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S. Pagan and T. Tabor share income on a 7:3 basis. They have capital balances of $ 102,000 and $ 52,000, respectively, when W.
Wolford is admitted to the partnership.
Prepare the journal entry to record the admission of W. Wolford under each of the following assumptions.
(a)
Investment of $ 94,000 cash for a 30% ownership interest with bonuses to the existing partners. (Credit account titles are
automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation
Debit
Credit
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