At April 30, partners' capital balances in Cullumber Company are G. Donley $66,560, C Lamar $61,440,...

Transcribed Image Text:

At April 30, partners' capital balances in Cullumber Company are G. Donley $66,560, C Lamar $61,440, and J. Pinkston $23,040. 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 manuelly Round answers to O decimal places, eg. 5.275) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $20,480 in cash. (2) Terrell purchases 33% of Lamar's ownership interest by paying Lamar $19,200 in cash. (3) Terrell invests $79,360 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $53,760 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Titles and Explanation 1. 2. Debit V Credit At April 30, partners' capital balances in Cullumber Company are G. Donley $66,560, C Lamar $61,440, and J. Pinkston $23,040. 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 manuelly Round answers to O decimal places, eg. 5.275) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $20,480 in cash. (2) Terrell purchases 33% of Lamar's ownership interest by paying Lamar $19,200 in cash. (3) Terrell invests $79,360 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $53,760 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Titles and Explanation 1. 2. Debit V Credit