At April 30, partners' capital balances in HIJ Partners are Ho $174,000, Ishikawa $142,000, and Jay $84,000.

Question:

At April 30, partners' capital balances in HIJ Partners are Ho $174,000, Ishikawa $142,000, and Jay $84,000. The income-sharing ratio is 4:2:1, respectively. On May 1, HIJK Partners is formed by admitting Kai to the firm as a partner with 20% equity.
Instructions
Journalize the admission of Kai under each of the following independent assumptions.
(a) Kai invests $100,000.
(b) Kai invests $145,000.
(c) Kai invests $65,000.
TAKING IT FURTHER
Kai is surprised to learn it is possible to purchase a interest with a gain or loss. Explain to him how this may happen.
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...