The capital balance and the profit and loss sharing ratio of the partnership S, T and U as ofDecember 31, 2010 are:Capital S (30%)$80,000,000Capital T (50%)$90,000,000Capital U (20%)$70,000,000The partners agreed to accept V into the partnership on January 1, 2011, for an interest incapital and operating profit.Requested1. Journalize V's entry into the partnership assuming that he invested$50,000,000 into the partnership for a 20% ownership interest and that thepartnership capital is revalued.2 Journalize Vs entry into the partnership assuming that he invested $70,000 inthe partnership for a 20% ownership interest and that the partnership capital isrevalued.

Journal entries of the transaction as follow under

Answered: The capital balance and the profit and…

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 ASAP Instructions: Prepare the entries to record the partnership formation assuming 1. The books of Abante are to be used by the partnership. 2. New set of books are to be opened for the partnership.
D1.
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