The Struter Partnership has total partners’ equity of $510,000, which is made up of Main, Capital, $400,000, and Frist, Capital, $110,000. The partners share net income and loss in a ratio of 80% to Main and 20% to Frist. On November 1, Adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. Prepare the journal entry to record the admission of Adison under each separate assumption: Adison invests cash of (1) $90,000; (2) $120,000; and (3) $80,000.
The Struter Partnership has total partners’ equity of $510,000, which is made up of Main, Capital, $400,000, and Frist, Capital, $110,000. The partners share net income and loss in a ratio of 80% to Main and 20% to Frist. On November 1, Adison is admitted to the partnership and given a 15% interest in equity and a 15% share in any income and loss. Prepare the journal entry to record the admission of Adison under each separate assumption: Adison invests cash of (1) $90,000; (2) $120,000; and (3) $80,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Struter
$400,000, and Frist, Capital, $110,000. The partners share net income and loss in a ratio of 80% to Main
and 20% to Frist. On November 1, Adison is admitted to the partnership and given a 15% interest in equity
and a 15% share in any income and loss. Prepare the
each separate assumption: Adison invests cash of (1) $90,000; (2) $120,000; and (3) $80,000.
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