The JKLM Partnership has the following balance sheet at January 1, 2018, prior to the admission of new partner, Ruiz. Cash and current assets $81,000 Land 230,000 Building and equipment 122,000 Total $433,000 Liabilities $77,000 Capital, Johnson 53,000 Capital, Kelly 75,000 Capital, Lopez 46,000 Capital, Mason 182,000 Total $433,000 Ruiz contributes $50,000 into the partnership for a 20% interest. The four original partners share profits and losses equally. Required: Using the bonus method, do the following: Prepare the journal entry to record the admission of Ruiz into the partnership.
The JKLM
Cash and current assets $81,000
Land 230,000
Building and equipment 122,000
Total $433,000
Liabilities $77,000
Capital, Johnson 53,000
Capital, Kelly 75,000
Capital, Lopez 46,000
Capital, Mason 182,000
Total $433,000
Ruiz contributes $50,000 into the partnership for a 20% interest. The four original partners share
Required:
Using the bonus method, do the following:
- Prepare the
journal entry to record the admission of Ruiz into the partnership.
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