The capital accounts of Trent Henry and Tim Chou have balances of $ 1 3 6 ,
Fantastic news! We've Found the answer you've been seeking!
Question:
The capital accounts of Trent Henry and Tim Chou have balances of $ and $ respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys onefifth of Henrys interest for $ and onefourth of Chous interest for $ Clarke contributes $ cash to the partnership, for which she is to receive an ownership equity of $
Required:
a On December journalize the entries to record the admission of Gilbert and Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
b What are the capital balances of each partner after the admission of the new partners?
Related Book For
Accounting
ISBN: 978-1337899451
27th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
Posted Date: