Chapter 12, Problem S12.7SE

Accounting for the admission of a new partner
Learning Objective 4
Penn has $90,500 capital and Hammet has $68,500 capital in the Penn & Hammet partnership. Penn and Hammet share profits and losses equally. Judy Pilard contributes cash of $53,000 to acquire a 1/4 interest in the new partnership.
Requirements
1. Calculate Pilard's capital in the new partnership.
2. Journalize the partnership’s receipt of the $53,000 from Pilard.