At April 30, partners' capital balances in PDL Company are: G. Donley $51,400, C. Lamar $50,100,...

 

Transcribed Image Text:

At April 30, partners' capital balances in PDL Company are: G. Donley $51,400, C. Lamar $50,100, and J. Pinkston $15,200. The income sharing ratios are 5 : 4: 1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner. Your answer is partially correct. Try again. Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,140 in cash. (2) Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $15,450 in cash. (3) Terrell invests $63,100 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $43,500 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Tities and Explanation Debit Credit 1. 4. Pinkston, Capital 16140 4. Terrell, Capital 16140 2. C. Lamar, Capitall 15450 4. Terrell, Capital 15450 3. Cashi 5. Terrell, Capitall 1. Terrell, Capital Distributions Terrell, Capital 4. tashl |Salaries Expense Distributions Salaries Expense 4. Terrell, Capitall DOD X Your answer is incorrect. Try again. Lamar's capital balance is $31,570 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20% of total partnership capital, what were Terrell's cash investment and the bonus to the new partner? Terrell's cash investment Bonus to new partner At April 30, partners' capital balances in PDL Company are: G. Donley $51,400, C. Lamar $50,100, and J. Pinkston $15,200. The income sharing ratios are 5 : 4: 1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner. Your answer is partially correct. Try again. Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,140 in cash. (2) Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $15,450 in cash. (3) Terrell invests $63,100 for a 30% ownership interest, and bonuses are given to the old partners. (4) Terrell invests $43,500 for a 30% ownership interest, which includes a bonus to the new partner. No. Account Tities and Explanation Debit Credit 1. 4. Pinkston, Capital 16140 4. Terrell, Capital 16140 2. C. Lamar, Capitall 15450 4. Terrell, Capital 15450 3. Cashi 5. Terrell, Capitall 1. Terrell, Capital Distributions Terrell, Capital 4. tashl |Salaries Expense Distributions Salaries Expense 4. Terrell, Capitall DOD X Your answer is incorrect. Try again. Lamar's capital balance is $31,570 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20% of total partnership capital, what were Terrell's cash investment and the bonus to the new partner? Terrell's cash investment Bonus to new partner

Answer rating: 100% (QA)

Journal entries in the books of the partnershipPDLT Company May01 ACCO... View the full answer