Browning and Douglas are partners who agree to admit Taylor to their partnership. Browning has a...
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Browning and Douglas are partners who agree to admit Taylor to their partnership. Browning has a capital balance of $51,000 and Douglas has a capital balance of $70,000. Browning and Douglas share net income in the ratio 2:8. Instructions Prepare the journal entries to admit Taylor to the partnership based on the following independent agreements. Round all amounts to the nearest dollar. a. Taylor invests $66,000 cash into the partnership for a 20% interest. b. Taylor invests $66,000 cash into the partnership for a 30% interest. c. Taylor purchases one-third of Browning's capital for $25,000. d. Taylo purchases one-half of Dougla's capital for $32,000. Browning and Douglas are partners who agree to admit Taylor to their partnership. Browning has a capital balance of $51,000 and Douglas has a capital balance of $70,000. Browning and Douglas share net income in the ratio 2:8. Instructions Prepare the journal entries to admit Taylor to the partnership based on the following independent agreements. Round all amounts to the nearest dollar. a. Taylor invests $66,000 cash into the partnership for a 20% interest. b. Taylor invests $66,000 cash into the partnership for a 30% interest. c. Taylor purchases one-third of Browning's capital for $25,000. d. Taylo purchases one-half of Dougla's capital for $32,000.
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Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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