G. Olde and R. Young share income on a 6 : 4 basis. They have capital balances

Question:

G. Olde and R. Young share income on a 6 : 4 basis. They have capital balances of $100,000 and $70,000, respectively, when K.Twener is admitted to the partnership.

Instructions

Prepare the journal entry to record the admission of K. Twener under each of the following assumptions.

(a) Investment of $90,000 cash for a 30% ownership interest with bonuses to the existing partners.

(b) Investment of $50,000 cash for a 30% ownership interest with a bonus to the new partner.

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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Sep 13, 2011 08:48 AM

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G. Olde and R. Young share income on a 6 : 4 basis. They have capital balances

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a Cash 90000 G Olde Capital 610 X 12000 7200 R Young Capital 410 X 12000 4800 K ...View the full answer

Accounting Principles

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