The capital accounts of the Moldy, Nina, and Obelix partnership at December 31, 2021, together with...
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The capital accounts of the Moldy, Nina, and Obelix partnership at December 31, 2021, together with profit- and loss-sharing ratios, are as follows: Moldy (25%) Nina (25%) Obelix (50%) The partners agree to admit Phoenix into the partnership. Required: Prepare the journal entry or entries to admit Phoenix into the partnership and calculate the partners' capital balances immediately after his admission under each of the following independent assumptions: $ 150,000 200,000 250,000 a) Obelix sells half of her interest to Phoenix for $180,000, and the partners agree to admit Phoenix into the partnership. b) Phoenix invests $150,000 cash in the partnership for a 25 percent interest in the partnership capital and profits, and partnership assets are revalued (using goodwill method). c) Phoenix invests $160,000 cash in the partnership for a 20 percent interest in the capital and profits, and partnership assets are revalued (using goodwill method). d) Phoenix invests $180,000 cash in the partnership for a 30% interest in the capital and profits, and partnership assets are not revalued (using bonus method). The capital accounts of the Moldy, Nina, and Obelix partnership at December 31, 2021, together with profit- and loss-sharing ratios, are as follows: Moldy (25%) Nina (25%) Obelix (50%) The partners agree to admit Phoenix into the partnership. Required: Prepare the journal entry or entries to admit Phoenix into the partnership and calculate the partners' capital balances immediately after his admission under each of the following independent assumptions: $ 150,000 200,000 250,000 a) Obelix sells half of her interest to Phoenix for $180,000, and the partners agree to admit Phoenix into the partnership. b) Phoenix invests $150,000 cash in the partnership for a 25 percent interest in the partnership capital and profits, and partnership assets are revalued (using goodwill method). c) Phoenix invests $160,000 cash in the partnership for a 20 percent interest in the capital and profits, and partnership assets are revalued (using goodwill method). d) Phoenix invests $180,000 cash in the partnership for a 30% interest in the capital and profits, and partnership assets are not revalued (using bonus method).
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Answer rating: 100% (QA)
Solution Particulars Capitals of existing portners before admission Bofit Showing ratio before Profit showing dractio after admission capital brought new Partner for his share of Profit CASE OI 6 Capi... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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