Question

Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry...

Admitting New Partners Who Buy an Interest and Contribute Assets

The capital accounts of Trent Henry and Tim Chou have balances of $119,500 and $86,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $27,500 and one-fourth of Chou’s interest for $18,900. Clarke contributes $29,200 cash to the partnership, for which she is to receive an ownership equity of $29,200.

a1. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank.

a2. Journalize the entry to record the admission of Clarke.

b. What are the capital balances of each partner after the admission of the new partners?

Partner Capital Balance
Trent Henry $
Tim Chou $
LeAnne Gilbert $
Becky Clarke $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

If you have any query ask in comment section. If you like the answer plz rate. Thanks

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and $93,800, respectively....
The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and $93,800, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $29,100 and one-fourth of Chou’s interest for $21,300. Clarke contributes $69,400 cash to the partnership, for which she is to receive an ownership equity of $69,400. Required: A. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $187,500 and $135,200, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $43,100 and one-fourth of Chou’s interest for $29,700. Clarke contributes $45,800 cash to the partnership, for which she is to receive an ownership equity of $45,800. a1. Journalize the entry to record the admission...
After the tangible assets have been adjusted to current market prices, the capital accounts of Brad...
After the tangible assets have been adjusted to current market prices, the capital accounts of Brad Paulson and Drew Webster have balances of $47,560 and $56,520, respectively. Austin Neel is to be admitted to the partnership, contributing $28,150 cash to the partnership, for which he is to receive an ownership equity of $32,900. All partners share equally in income. Required: A. On December 31, journalize the entry to record the admission of Neel, who is to receive a bonus of...
After the tangible assets have been adjusted to current market prices, the capital accounts of Harper...
After the tangible assets have been adjusted to current market prices, the capital accounts of Harper and Kahlil have balances of $60,000 and $90,000, respectively. Fay is to be admitted to the partnership, contributing $45,000 cash, for which she is to receive an ownership equity of $60,000. All partners share equally in income. Required: (1) Journalize the entry to record the admission of Fay, who is to receive a bonus of $15,000. Refer to the Chart of Accounts for exact...
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson...
After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $44,230 and $63,190, respectively. Lewan Gorman is to be admitted to the partnership, contributing $31,360 cash to the partnership, for which he is to receive an ownership equity of $36,610. All partners share equally in income. Required: a. On December 31, journalize the entry to record the admission of Gorman, who is to receive a bonus of...
Admission of new partner—Revaluation Assume that Partners A and B have Capital Accounts equal to $720,000...
Admission of new partner—Revaluation Assume that Partners A and B have Capital Accounts equal to $720,000 and $360,000, respectively. Partner C wants to join the partnership as one-third partner. Partner C contributes $1,530,000 in cash to the partnership in return for a one-third interest. Prior to the admission of Partner C, Partners A and B wish to revalue the long-term assets of the partnership. They obtain an appraisal of the land and building that indicates a current value of $1.8...
Admission of new partner-Bonus Method Assume that Partners A and B each report a Capital Account...
Admission of new partner-Bonus Method Assume that Partners A and B each report a Capital Account of $150,000. Partner C wants to join the partnership as an equal one-third partner. Because the partnership has been very profitable, Partners A and B require Partner C to contribute $300,000 in cash to the partnership in return for a one-third interest. Assume that Partners A and B share profits 60% and 40%, respectively, prior to the admission of Partner C. After admission of...
35) When a new partner is admitted at a higher-than-book-value contribution, the existing partners will receive...
35) When a new partner is admitted at a higher-than-book-value contribution, the existing partners will receive a bonus amount. A. True; ____or B.False ____ 36) Keith and Jim are partners. Keith has a capital balance of $47,000 and Jim has a capital balance of $32,000. Jim sells $15,000 of his ownership to Bill. Which of the following is TRUE of the journal entry to admit Bill? A) Bill, Capital will be debited for $17,000. B) Jim, Capital will be debited...
Pam and John are partners in PJ’s partnership, having capital balances of $120,000 and $40,000, respectively,...
Pam and John are partners in PJ’s partnership, having capital balances of $120,000 and $40,000, respectively, and share income in a ratio of 3:1. Gerry is to be admitted into the partnership with a 20 percent interest in the business. Required For each of the following independent situations, first record Gerry’s admission into the partnership and then specify and briefly explain why the accounting method used in that situation is GAAP or non-GAAP. Gerry invests $50,000, and goodwill is to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT