LO3 excel mhhe.com/LLPW1e PA12-5 Admitting a Partner-Journalizing Purchase and Investment Situations Dick and Jane are partners...

 

Transcribed Image Text:

LO3 excel mhhe.com/LLPW1e PA12-5 Admitting a Partner-Journalizing Purchase and Investment Situations Dick and Jane are partners in the DJ partnership. They agree to admit Spot into the partnership. According to the partnership agreement, any bonuses will be allocated on the basis of the fixed ratio prior to the admission of the new partner. Additional information available prior to Spot's admission follows. Capital account balance Fixed ratio Dick $61,000 58% Jane $57,000 42% Required: Prepare journal entries to record the admission of Spot, under each of the following independent assumptions. 1. Spot pays Dick and Jane $19,000 each. In exchange he receives 30 percent of each partner's capital account balance. 2. Spot invests $25,000 into the partnership in exchange for a 25 percent interest in the partnership. 3. Spot invests $62,000 into the partnership in exchange for a 30 percent interest in the partnership. LO3 excel mhhe.com/LLPW1e PA12-5 Admitting a Partner-Journalizing Purchase and Investment Situations Dick and Jane are partners in the DJ partnership. They agree to admit Spot into the partnership. According to the partnership agreement, any bonuses will be allocated on the basis of the fixed ratio prior to the admission of the new partner. Additional information available prior to Spot's admission follows. Capital account balance Fixed ratio Dick $61,000 58% Jane $57,000 42% Required: Prepare journal entries to record the admission of Spot, under each of the following independent assumptions. 1. Spot pays Dick and Jane $19,000 each. In exchange he receives 30 percent of each partner's capital account balance. 2. Spot invests $25,000 into the partnership in exchange for a 25 percent interest in the partnership. 3. Spot invests $62,000 into the partnership in exchange for a 30 percent interest in the partnership.

Answer rating: 100% (QA)

1 Spot pays Dick and Jane 19000 each In exchange he receives 30 percent of each partn... View the full answer