On April 21, 2014, Wilson agrees to invest $30,000 into a partnership for a 20% interest in total partnership equity. At the time Wilson is admitted, the existing partners, Beacon and Metcalf, each have a $30,000 capital balance. Prepare the entry on April 21 to record Wilson’s admission to the partnership. Any bonus is to be shared equally by Beacon and Metcalf.
Answer to relevant QuestionsLector, Wylo, and Stuart are partners with capital balances of $25,000, $40,000, and $35,000 respectively. They share income and losses equally. Stuart is retiring and has agreed to accept $35,000 cash for his share of the ...For each scenario below, recommend a form of business organization: sole proprietorship, partnership, or corporation. Along with each recommendation explain how business profits would be taxed if the form of organization ...The partners in the Magesty Partnership have agreed that partner Prince may sell his $140,000 equity in the partnership to Queen, for which Queen will pay Prince $110,000. Present the partnership’s journal entry to record ...Assume the same information as in Exercise 12-14 except that capital deficiencies at liquidation are absorbed by the remaining partners according to their income (loss) ratio.Required Prepare the entry to distribute the ...Phung, Moier, and Lister invested $130,000, $150,000, and $120,000, respectively, in a partnership. During its first year, the firm earned $25,000.Required Prepare entries to close the firm’s Income Summary account as of ...
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