ces The Struter Partnership has total partners' equity of $620,000, which is made up of Main,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ces The Struter Partnership has total partners' equity of $620,000, which is made up of Main, Capital, $434,000, and Frist, Capital, $186,000. The partners share net income and loss in a ratio of 81% to Main and 19% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption. (1) Record the admission of Adison with an investment of $155,000 for a 20% interest in the equity and a 20% share in any income and loss. (2) Record the admission of Adison with an investment of $190,000 for a 20% interest in the equity and a 20% share in any income and loss. (3) Record the admission of Adison with an investment of $125,000 for a 20% interest in the equity and a 20% share in any income and loss. View transaction list V No A B Transaction (1) (2) View journal entry worksheet (3) Cash Adison, Capital Cash Adison, Capital Main, Capital Frist, Capital Cash Main, Capital Frist, Capital Adison, Capital General Journal Debit 155,000 190,000 125,000 Credit 155,000 162,000 22,680 5,320 19,440 5,320 ces The Struter Partnership has total partners' equity of $620,000, which is made up of Main, Capital, $434,000, and Frist, Capital, $186,000. The partners share net income and loss in a ratio of 81% to Main and 19% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption. (1) Record the admission of Adison with an investment of $155,000 for a 20% interest in the equity and a 20% share in any income and loss. (2) Record the admission of Adison with an investment of $190,000 for a 20% interest in the equity and a 20% share in any income and loss. (3) Record the admission of Adison with an investment of $125,000 for a 20% interest in the equity and a 20% share in any income and loss. View transaction list V No A B Transaction (1) (2) View journal entry worksheet (3) Cash Adison, Capital Cash Adison, Capital Main, Capital Frist, Capital Cash Main, Capital Frist, Capital Adison, Capital General Journal Debit 155,000 190,000 125,000 Credit 155,000 162,000 22,680 5,320 19,440 5,320
Expert Answer:
Answer rating: 100% (QA)
The correct journal entries to record the admission of Adison for a 20 interest in the equity and a ... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
FinCorp Inc. is exploring different portfolio allocations between two stocks. Complete the following table. Case1 Case 2 Case 3 Case 4 Case 5 $ invested in stock 1 $ invested in stock 2 Total $...
-
Return to the RONA delivery truck example in Exhibit 10-5 on page 589. Suppose RONA sold the truck on December 31, 2016, for $31,000 cash, after using the truck for three full years. Amortization for...
-
Consider households' demand for chicken meat. For each of the events listed below, state and explain the likely effect on the demand for chicken. How would each event be illustrated in a diagram? a....
-
You are a salesperson working for American Airlines calling on the vice president of a large manufacturing company. Many of the companys people travel all over the world, and you would like them to...
-
Stratford Industries, Inc., has a foreign operation with the following current year contribution margin income statement (amounts in foreign currency, FC): Sales...
-
1. List and explain what benefits Mimitos will obtain with the creation of a website and online sales platform.
-
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2021 through 2024 except for differences in depreciation on an...
-
Will your new and improved civil service system require a revised hiring strategy? What changes in hiring will have to take place?
-
To stay competitive, many organizations regularly upgrade their computer technology. This was the case for Courier Cats, a small but profitable courier firm. To improve the delivery and tracking of...
-
What is Management by Objectives (MBO)? What problems may develop with its implementation?
-
it was still weeks before Elsa was to be formally appointed as the leader of a newly formed group, she decided to show her boss and the other group members that she was worthy of a promotion. She was...
-
What are some of the reasons that merit pay plans are often ineffective and what can be done to make them more effective?
-
D1 The term "adjusting entries" refers to a very important step in the accounting cycle. Explain when, why, and how the adjusting process is used. Provide an example to clarify your statements....
-
Heineken N.V., a global brewer based in the Netherlands, reports the following balance sheet accounts for the year ended December 31, 2016 (euros in millions). Prepare the balance sheet for this...
-
Identify which accounting principle or assumption best describes each of the following practices: a. In December 2012, Chavez Landscaping received a customers order and cash prepayment to install sod...
-
On September 15, Krug Company purchased merchandise inventory from Makarov with an invoice price of $ 35,000 and credit terms of 2/10, n/30. Schneider Company paid Makarov on September 28. Prepare...
-
The payroll records of Speedy Software show the following information about Marsha Gottschalk, an employee, for the weekly pay period ending September 30, 2013. Gottschalk is single and claims one...
-
In the case considered in the question (14), show what the trajectory corresponds to in case the magnitude of acceleration is \(a=2 k \sqrt{1+\frac{t}{T}}\), where \(T=\) cost. Question 14 A particle...
-
A projectile is launched from the Earth's surface with velocity \(v_{0}=50.0 \mathrm{~m} / \mathrm{s}\), at an angle \(\theta=60^{\circ}\) to the vertical. Determine the radius of curvature of the...
-
The equation of motion of a particle is given in Cartesian coordinates by the relation \(\mathbf{r}(t)=\alpha t^{2} \hat{\mathbf{i}}+\beta t^{2} \hat{\mathbf{j}}\). Determine (i) the trajectory of...
Study smarter with the SolutionInn App