At April 30, partners' capital balances in DES Partners are Dexter $51,000, Emley $30,160, and Singh $27,840. The profit-sharing ratio is 5:3:2, respectively. On May 1, DESW Partners is formed by admitting Watson to the firm as a partner with 20% equity.(a)Watson invests $27,250. Journalize the admission of Watson. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)May 1(b)Your answer is correct.Date Account TitlesCashWatson, CapitaleTextbook and MediaMay 1Date Account TitlesDebit27250Watson invests $40,600. Journalize the admission of Watson. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)DebitCredit27250Credit

In this question, we will post the journal entry for the admission of Watson, Journal entry helps in…

Answered: Your answer is correct. Vatson invests…

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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At April 30, partners' capital balances in Crane Company are G. Donley $54,080, C. Lamar $49,920, and J. Pinkston $18,720. The income sharing ratios are 5:4:1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner. (a) Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,275.) (1) (2) (3) (4) No. Account Titles and Explanation 1. 2. 3. Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,640 in cash. Terrell purchases 33¹/3% of Lamar's ownership interest by paying Lamar $15,600 in cash. Terrell invests $64,480 for a 30% ownership interest, and bonuses are given to the old partners. Terrell invests $43,680 for a 30% ownership Interest, which includes a bonus to the new partner. 4. Debit Credit
Talent, a local HR consulting firm, has total partners’ equity of $794,000, which is made up of Hall, Capital, $617,000, and Reynolds, Capital, $177,000. The partners share profit/(losses) in a ratio of 80% to Hall and 20% to Reynolds. On July 1, Morris is admitted to the partnership and given a 20% interest in equity.Required:Prepare the journal entry to record the admission of Morris under each of the following unrelated assumptions, in which Morris invests cash of:a. $198,500 b. $247,000 c. $127,000
Talent, a local HR consulting firm, has total partners’ equity of $798,000, which is made up of Hall, Capital, $619,000, and Reynolds, Capital, $179,000. The partners share profit/(losses) in a ratio of 80% to Hall and 20% to Reynolds. On July 1, Morris is admitted to the partnership and given a 20% interest in equity.Required:Prepare the journal entry to record the admission of Morris under each of the following unrelated assumptions, in which Morris invests cash of:a. $199,500 Record the admission of morris b. $249,000 Record the admission of morris. c. $129,000 Record the admission of morris
Talent, a local HR consulting firm, has total partners’ equity of $764,000, which is made up of Hall, Capital, $602,000, and Reynolds, Capital, $162,000. The partners share profit/(losses) in a ratio of 75% to Hall and 25% to Reynolds. On July 1, Morris is admitted to the partnership and given a 20% interest in equity. Required: Prepare the journal entry to record the admission of Morris under each of the following unrelated assumptions, in which Morris invests cash of: a. $191,000 - Record the admission of Morris b. $232,000 -Record the admission of Morris c. $112,000 -Record the admission of Morris
In Indigo Co., capital balances are Adrienne $61,000 and Dino $79,000. The partners share income equally. Javier is admitted to the firm with a 40% interest by an investment of cash of $88,000. Journalize the admission of Javier. (Credit account titles are automatically Indented when the amount Is entered. Do not Indent manually. LUS all deblt entrles before credit entrles.) Account Titles and Explanation Debit Credit, Cash I 88,000 Adrienne, Capital Dino, Capital Javier, Capital
In Crane Co, capital balances are frey $37.900 and Pedigo $45.400. The partners share income equally Vernon is admitted to the firm with a 42% interest by an investment of cash of $48,000. Journalize the admission of Vernon. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit
Capital balances in Ayayai Co. are Dene $61,000, Aneta $36,200, and Harriet $26,600. The partners share income equally. Harriet receives $31,800 from partnership assets in withdrawing from the firm. Journalize the withdrawal of Harriet. (Credit account titles are automatically Indented when the amount Is entered. Do not Indent manually. LUst all deblt entrles before credlt entries.) Account Titles and Explanation Debit Credit,
Capital balances in Grouper Co, are Dene S64,000, Aneta $38,200, and Harriet $25,500. The partners share income equally. Harriet receives $31,400 from partnership assets in withdrawing from the firm. Journalize the withdrawal of Harriet. (Credit account titles are automaticàlly indented when the omount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
At April 30, partners’ capital balances in Crane Company are G. Donley $ 54,080, C. Lamar $ 49,920, and J. Pinkston $ 18,720. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner. (1) Terrell purchases 50% of Pinkston’s ownership interest by paying Pinkston $ 16,640 in cash. (2) Terrell purchases 331/3% of Lamar’s ownership interest by paying Lamar $ 15,600 in cash. (3) Terrell invests $ 64,480 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $ 43,680 for a 30% ownership interest, which includes a bonus to the new partner. Journalize the admission of Terrell under each of the following independent assumptions.
A & B are partners sharing profits 60% and 40% respectively. On July 1 their interest in the firm are as follows: A. P 23 000; B. P 18 000; C is admitted as a partner upon the investment of P 16 000. Required: Record the investment by C in journal form, assuming: The new partner is given credit for the actual investment made. The new partner is given 1/3 interest, a bonus being contributed by the old partners. The new partner is given a ¼ interest, a bonus being allowed to the old partners.
At April 30, partner’s capital balances in YBG company are as follows: Youngee Tk.30,000, Beyer Tk.16,000 and Ciger Tk.10,000.The income sharing ratios are 5:3:2 respectively. On May 1, the YBGE Company is formed by admitting Edelman as a partner.Beyer’s capital balance is TK.25,000 after admitting Edelman to the partnership by investment. If Beyer’s ownership interest is 25% of total partnership capital, what were (1) Edelman’s cash investment and 2) the total bonus to the old partners.
In Sandhill Co., the capital balances of the partners are A. Anderson $27,900 ; S. Harrin $23,250 ; and K. Robinson $33,480 . The partners share profit equally. On June 9 of the current year, D. Garcia is admitted to the partnership by purchasing one-half of K. Robinson's interest for $18,600 paid to him personally. Journalize the admission of Garcia on June 9. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)\\nDate Account Titles\\nDebit\\nCredit\\nJune 9\\nD. Garcit, Capi\\neTextbook and Media

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