Peter and Paul have a partnership in operation. Peters Capital balance is $ 3 0 , 0

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Peter and Paul have a partnership in operation. Peters Capital balance is $

30, 000

and Pauls Capitalbalance is $

20, 000 .

Mary joins the partnership by investing $

50, 000

cash in return for a

40 %

interest in the firm.

Prepare the journal entry to record the admission of Mary to the partnership, assuming Peter and Paul split gains and losses using a

4

1

ratio.

)

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Mar 27, 2024 11:19 AM

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Peter and Paul have a partnership in operation. Peters Capital balance is $ 3 0 , 0

Question:

Expert Answer:

When Mary joins the partnership her investment is recorded as a capital contribution The journal ent... View the full answer

Income Tax Fundamentals 2013

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