The Struter Partnership has total partners' equity of $460,000, which is made up of Main, Capital, $322,000, and Frist, Capital, $138,000. The partners share net income and loss in a ratio of 72% to Main and 28% to Frist. On November 1, Adison is admitted to the partnership and glven a 20% Interest in equlty and a 20% share In any Income and loss. Prepare Journal entries to record the admission of Adison for a 20% Interest in the equity and a 20% share in any Income and loss under independent assumption. (1) Record the admission of Adison with an Investment of $115,000 for a 20% Interest in the equity and a 20% share in any Income and loss. (2) Record the admission of Adison with an Investment of $150,000 for a 20% Interest in the equity and a 20% share In any Income and loss. (3) Record the admission of Adison with an Investment of $85,000 for a 20% Interest in the equlty and a 20% share in any Income and loss. Answer is complete but not entirely correct.

The Struter Partnership has total partners' equity of $460,000, which is made up of Main, Capital, $322,000, and Frist, Capital, $138,000. The partners share net income and loss in a ratio of 72% to Main and 28% to Frist. On November 1, Adison is admitted to the partnership and glven a 20% Interest in equlty and a 20% share In any Income and loss. Prepare Journal entries to record the admission of Adison for a 20% Interest in the equity and a 20% share in any Income and loss under independent assumption. (1) Record the admission of Adison with an Investment of $115,000 for a 20% Interest in the equity and a 20% share in any Income and loss. (2) Record the admission of Adison with an Investment of $150,000 for a 20% Interest in the equity and a 20% share In any Income and loss. (3) Record the admission of Adison with an Investment of $85,000 for a 20% Interest in the equlty and a 20% share in any Income and loss. Answer is complete but not entirely correct.

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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