The Struter Partnership has total partners' equity of $420,000, which is made up of Main, Capital,...
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The Struter Partnership has total partners' equity of $420,000, which is made up of Main, Capital, $294,000, and Frist, Capital, $126,000. The partners share net income and loss in a ratio of 72% to Main and 28% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption. (1) Record the admission of Adison with an investment of $105,000 for a 20% interest in the equity and a 20% share in any income and loss. (2) Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income and loss. (3) Record the admission of Adison with an investment of $75,000 for a 20% interest in the equity and a 20% share in any income and loss. No A B C Transaction (1) (2) (3) Cash Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital Answer is not complete. General Journal 3333 Debit 105,000 140,000 75,000 Credit 105,000 20,160 7,840 112,000 17,280 6,720 51,000 The Struter Partnership has total partners' equity of $420,000, which is made up of Main, Capital, $294,000, and Frist, Capital, $126,000. The partners share net income and loss in a ratio of 72% to Main and 28% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption. (1) Record the admission of Adison with an investment of $105,000 for a 20% interest in the equity and a 20% share in any income and loss. (2) Record the admission of Adison with an investment of $140,000 for a 20% interest in the equity and a 20% share in any income and loss. (3) Record the admission of Adison with an investment of $75,000 for a 20% interest in the equity and a 20% share in any income and loss. No A B C Transaction (1) (2) (3) Cash Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital Cash Main, Capital Frist, Capital Adison, Capital Answer is not complete. General Journal 3333 Debit 105,000 140,000 75,000 Credit 105,000 20,160 7,840 112,000 17,280 6,720 51,000
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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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