The capital accounts of the Ann, Bob, and Car partnership at December 31, 2016, together with profit- and loss-sharing ratios, are as follows: Ann (25%) $75,000 Bob (25%) 100,000 Car (50%) 125,000
P 16-8 Recording new partner investment—Various situations
The capital accounts of the Ann, Bob, and Car partnership at December 31, 2016, together with profit- and loss-sharing ratios, are as follows:
|
Ann (25%) |
$75,000 |
|
Bob (25%) |
100,000 |
|
Car (50%) |
125,000 |
The partners agree to admit Dar into the partnership.
Required
Prepare the
-
Car sells half of her interest to Dar for $90,000, and the partners agree to admit Dar into the partnership.
-
Dar invests $75,000 cash in the partnership for a 25 percent interest in the partnership capital and profits, and partnership assets are revalued.
-
Dar invests $80,000 cash in the partnership for a 20 percent interest in the capital and profits, and partnership assets are revalued.
-
Dar invests $90,000 cash in the partnership for a 30% interest in the capital and profits, and partnership assets are not revalued.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
