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In the EZ Co., the capital balances of the partners are J. Edie $48,000 and K. Zane $32,000. The partners

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In the EZ Co., the capital balances of the partners are J. Edie $48,000 and K. Zane $32,000. The partners share profit in a 5:3 ratio, respectively. On October 1 of the current year, when she invests $40,000 cash in the partnership, J. Kerns is admitted to the partnership with a 40% interest.
(a) Journalize the admission of Kerns on October 1.
(b) What would the journal entry be if Kerns had paid $60,000 for a 40% interest in the partnership?
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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a Investment of 40 000 Oct 1 Cash 40 000 J Edie Capital 62 5 8 000 5 0…View the full answer


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Accounting Principles Part 3

Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Question Details
Chapter # 12- Accounting for Partnerships
Section: Brief Exercises
Problem: 11
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Question Posted: March 30, 2017 12:28:27
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