Daniel and Matthew have agreed to let Luke join their partnership by investing $100,000. At the time of Luke’s admission, Daniel and Matthew share profits and losses at 60% and 40%, respectively. The capital balances are $54,000 for Daniel and $46,000 for Matthew. Prepare general journal entries to admit Luke to the partnership under each of the following assumptions: 

a. Luke invests $100,000 for a one-half interest in the partnership. 

b. Luke invests $100,000 for a 45% interest in the partnership 

c. How much should Luke contribute to have a one-fourth interest in the partnership?

Answer rating: 100% (QA)

a On the basis of Luke investment Total capital of firm 100000 21 200000 actual capital o... View the full answer