Question

Check my work 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 the following independent assumptions. (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. View transaction list Journal entry worksheet < 1 2 3 Record the admission of Madison with an investment of $140,000 for a 20% < Prev 1 of 2 !!! Next >

Answer 1

Transaction	General journal	Debit	Credit
1.	Cash	105000
	Adison, Capital (420000+105000)*20%		105000
2.	Cash	140000
	Adison, Capital (420000+140000)*20%		112000
	Main, Capital (140000-112000)*72%		20160
	Frist , Capital (140000-112000)*28%		7840
3.	Cash	75000
	Main, Capital (99000-75000)*72%	17280
	Frist , Capital (99000-75000)*28%	6720
	Adison, Capital (420000+75000)*20%		99000