Talent, a local HR consulting firm, has total partners’ equity of $764,000, which is made up of Hall, Capital, $602,000, and Reynolds, Capital, $162,000. The partners share profit/(losses) in a ratio of 75% to Hall and 25% to Reynolds. On July 1, Morris is admitted to the partnership and given a 20% interest in equity. Required: Prepare the journal entry to record the admission of Morris under each of the following unrelated assumptions, in which Morris invests cash of: a. $191,000 - Record the admission of Morris b. $232,000 -Record the admission of Morris c. $112,000 -Record the admission of Morris
Talent, a local HR consulting firm, has total partners’ equity of $764,000, which is made up of Hall, Capital, $602,000, and Reynolds, Capital, $162,000. The partners share profit/(losses) in a ratio of 75% to Hall and 25% to Reynolds. On July 1, Morris is admitted to the partnership and given a 20% interest in equity. Required: Prepare the journal entry to record the admission of Morris under each of the following unrelated assumptions, in which Morris invests cash of: a. $191,000 - Record the admission of Morris b. $232,000 -Record the admission of Morris c. $112,000 -Record the admission of Morris
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Talent, a local HR consulting firm, has total partners’ equity of $764,000, which is made up of Hall, Capital, $602,000, and Reynolds, Capital, $162,000. The partners share profit/(losses ) in a ratio of 75% to Hall and 25% to Reynolds. On July 1, Morris is admitted to the partnership and given a 20% interest in equity.
Required:
Prepare the journal entry to record the admission of Morris under each of the following unrelated assumptions, in which Morris invests cash of:
a. $191,000
- Record the admission of Morris
b. $232,000
-Record the admission of Morris
c. $112,000
-Record the admission of Morris
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