John and Ron are partners with capital balances of $30,000 and $40,000, respectively. They share profits...

 

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John and Ron are partners with capital balances of $30,000 and $40,000, respectively. They share profits and losses in a 25:75 ratio. John and Ron admit Lou to a 20% interest in a new partnership when Lou invests $10,000 in the business. 1. Journalize the partnership's receipt of cash from Lou. 2. What is each partner's capital in the new partnership? John and Ron are partners with capital balances of $30,000 and $40,000, respectively. They share profits and losses in a 25:75 ratio. John and Ron admit Lou to a 20% interest in a new partnership when Lou invests $10,000 in the business. 1. Journalize the partnership's receipt of cash from Lou. 2. What is each partner's capital in the new partnership?

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1 Journalize the partnerships receipt of cash from Lou To record the partnerships receipt of cash fr... View the full answer