Question

After the tangible assets have been adjusted to current market prices, the capital accounts of Cecil Jacobs and Maria Estaban have balances of $61,000 and $59,000 respectively.
Lee White is to be admitted to the partnership, contributing $45,000 cash to the partnership, for which she is to receive an ownership equity of $55,000. All partners share equally in income.
a. Journalize the entry to record the admission of White, who is to receive a bonus of $10,000.
b. What are the capital balances of each partner after the admission of the new partner?



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  • CreatedNovember 10, 2012
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