Capital balances and profit-sharing percentages for the partnership of Man, Eme, and Fot on January 1, 2016,
Question:
Capital balances and profit-sharing percentages for the partnership of Man, Eme, and Fot on January 1, 2016, are as follows:
Man (36%) ..........$140,000
Eme (24%) .......... 100,000
Fot (40%) ........... 160,000
.........................$400,000
On January 3, 2016, the partners agree to admit Box into the partnership for a 25 percent interest in capital and earnings for his investment in the partnership of $120,000. Partnership assets are not to be revalued.
REQUIRED
1. Determine the capital balances of the four partners immediately after the admission of Box.
2. What is the profit- and loss-sharing ratio for Man, Eme, Fot, and Box?
PartnershipA 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...
Step by Step Answer:
1 Investment of 120000 in the partnership with no revaluation 400000 old capital 120000 additional i...View the full answer
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
