The Dobler and Menke Partnership has partner capital account balances as follows: Dobler, Capital $550,000 Menke, Capital
Question:
Dobler, Capital $550,000
Menke, Capital 200,000
The partners share income and losses in the ratio of 60% to Dobler and 40% to Menke.
Instructions
Prepare the journal entry on the books of the partnership to record the admission of Sloan as a new partner under the following three independent circumstances.
1. Sloan pays $400,000 to Dobler and $150,000 to Menke for one-half of each of their ownership interest in a personal transaction.
2. Sloan invests $600,000 in the partnership for a one-third interest in partnership capital.
3. Sloan invests $240,000 in the partnership for a one-third interest in partnership capital.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Related Book For
Advanced Accounting
ISBN: 978-1305084858
12th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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