Question: On January 1, 2019, ABCD admitted a new partner, E. The firm was renamed ABCDE LLP. Partner E contributed $100,000 cash for a 25% share

On January 1, 2019, ABCD admitted a new partner, E. The firm was renamed ABCDE LLP. Partner E contributed $100,000 cash for a 25% share in capital and profits. Partner E was admitted to the firm using the bonus method. However, partner E did not contribute any intangible assets, exceptional business acumen, or an existing clientele.

Prepare the journal entry to admit E to the partnership.

Step by Step Solution

★★★★★

3.40 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Heres the journal entry to admit Partner E to the partnership ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Select the correct answer for each of the following questions. Note: The following balance sheet is for the partnership of Alex, Betty, and Claire in questions 1 and 2: Cash $ 20,000 Other Assets...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

1. Betty contributed property with a $40,000 basis and fair market value of $85,000 to the Rust Partnership in exchange for a 50% interest in partnership capital and profits. During the first year of...

On January 1, 2019, Ball Corporation purchased, as a stock investment, 10,000 shares of Leftwich Company common stock for $15 cash per share. On December 31, 2019, Leftwich announced net income of...

Make-It-Big Corporation is planning to build a new factory costing $2,000,000. On January 1, 2019, Make-ft-Big plans to issue bonds in the amount of $1,800,000 that will be paid in five years....

A law practice was incorporated on January 1, 2019, and expects to earn $25,000 per month before deducting attorney Shondas salary. Shonda owns 100% of the stock in the practice. The corporation and...

Carow SA purchased on January 1, 2019, as a held-for-collection investment, 60,000 of the 8%, 5-year bonds of Harrison, Inc. for 65,118, which provides a 6% return. The bonds pay interest...

Laura Leasing SA signs an agreement on January 1, 2019, to lease equipment to Plote AG. The following information relates to this agreement. 1. The term of the non-cancelable lease is 3 years with no...

Morgan Leasing Group signs an agreement on January 1, 2019, to lease equipment to Cole plc. The following information relates to this agreement. 1. The term of the non-cancelable lease is 6 years...

Winston Industries and Ewing SA enter into an agreement that requires Ewing to build three diesel-electric engines to Winston's specifications. Upon completion of the engines, Winston has agreed to...

11. Identify the following drugs and provide an explanation for their mechanism of action. HN HDHC

A refinery buys 10 million barrels of crude oil at a market price of $60 per barrel on 11th August 20X1. Having processed the oil, the refinery sells its final products in October 20X1 for an average...

4.39 Obtain the Thevenin equivalent at terminals a - b of the circuit shown in Fig. 4.106. 3 A 10 16 24 V + www 10 502 ww ob

[The following information applies to the questions displayed below.] Trey has two dependents, his daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife. What amount of...

This year Lloyd, a single taxpayer, estimates that his tax liability will be $10,150. Last year, his total tax liability was $15,100. He estimates that his tax withholding from his employer will be...

Olga is married and files a joint tax return with her husband. What amount of AMT exemption may she deduct under each of the following alternative circumstances? Exhibit 8-5. (Leave no answer blank....

(a) How much work is done to move a 1.80 X 10 3 -kg Chevrolet Tahoe from rest to 35.2 m/s on a level road? (b) If this takes place over a distance of 251 m, what is the average net force applied to...

Harrison Forklift's pension expense includes a service cost of $19 million. Harrison began the year with a pension liability of $46 million (underfunded pension plan). 1. Interest cost, $7; expected...

What you have learned regarding being an authentic project manager. How you will empower your team and build trust. Communication techniques you will use on your projects.

ACC26Assignment on Chapter 3 and 4 Assignment Due Date: Wednesday October 21 by 11:58 pm SABRINA CORPORATION UNADJUSTED TRIAL BALANCE DECEMBER 31, 2019 DEST CREDIT 36 30.300 2015 2.450 30 000 900.000...

ABCD Company issued a Convertible Bond on 1 January 2019. The following information about the Convertible Bond is available: Face Value = $2,500,000; Life: 5 years; Interest: Annual on 31 December;...

1.Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 88,000 units were started, and 65% completed at months end. Total costs were...

On January 1, 2018, Toque Inc., a Canadian company, acquired 80% of the outstanding shares of Tam plc, a Scottish company, for consideration of 1,800,000. On that date, Tam plc had share capital of...

Hello there! The questions are all about intangible assets and R&D costs. Kindly explain the solutions on how you get the answer. There are no missing graphics, data or other informations. Thank you....