Concept explainers
Concept Introduction:
Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:
- By bringing a new asset or cash
- By purchasing the interest in partnership from existing partners of the firm
- By paying the bonus for the
goodwill of the firm - By receiving the bonus for goodwill
Requirements: 1
To prepare: The Journal entries for the addmission of Young as a partner on July 31 when Young pays Longval $ 168,000 cash to purchase Longvals interest.
Requirements: 2
To prepare: The Journal entries for the addmission of Young as a partner on July 31 when Young contributes $84,000 to the partnership, acquiring a ¼ interest in the business.
Requirements: 3
To prepare: The Journal entries for the addmission of Young as a partner on July 31 when
Young contributes $ 84,000 to the partnership , acquiring a 1/6 interest in the business.
Requirements: 4
To prepare: The Journal entries for the addmission of Young as a partner on July 31 when
Young contributes $ 84,000 to the partnership , acquiring a 1/3 interest of the business.
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Chapter 12 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Horngren's Accounting, The Financial Chapters (My Accounting Lab)
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