The capital accounts of Alan Evans and Mary Farr have balances of $80,000 and $70,000 respectively....

 

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The capital accounts of Alan Evans and Mary Farr have balances of $80,000 and $70,000 respectively. Don Reese and Gloria Swain are to be admitted to the partnership. Reese purchase one-fourth of Evans interest for $22,500 and one-fifth of Farr's interest for $15,000. Swain contributes $30,000 cash to the partnership, for which she receives an ownership equity of $30,000. a. Journalize the entries to record the admission of (1) Reese and (2) Swain b. What are the capital balances of each partner after the admission of the new partners? The capital accounts of Alan Evans and Mary Farr have balances of $80,000 and $70,000 respectively. Don Reese and Gloria Swain are to be admitted to the partnership. Reese purchase one-fourth of Evans interest for $22,500 and one-fifth of Farr's interest for $15,000. Swain contributes $30,000 cash to the partnership, for which she receives an ownership equity of $30,000. a. Journalize the entries to record the admission of (1) Reese and (2) Swain b. What are the capital balances of each partner after the admission of the new partners?

Answer rating: 100% (QA)

Date Coumal Emtries Alan Evans Capital Alc Goodwll Ac Reese apital AC 200... View the full answer