Question

OOK Show Me How Calculator Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $161,000 and $116,000, respectively. Leanne Gibertad Bedry Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $37,000 and one fourth of Chou's interest for $25.500. Clare contributes $39.100 cash to the partnership, for which she is to receive an ownership equity of $39,300. al. 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 I LIỆU

Answer 1

a1.

Admission of Gilbert	Trent Henry's Capital	Tim Chou's Capital
Share capital at the time of admission	$        161,000.00	$ 116,000.00
Interest bought by Gilbert	1/5th	1/4th
Share Capital bought by Gilbert	$           32,200.00	$    29,000.00

Journal Entry	Debit	Credit
Trent Henry's Capital	$          32,200.00
Tim Chou's Capital	$          29,000.00
Gilbert's Capital		$    61,200.00

a2.

Clarke contributes $39,300 to the partnership
Journal Entry
Cash	$          39,300.00
Clarke's Capital		$    39,300.00

b.

Partner's Capital Balances	Capital before admission	At the time of Admission	New Capital Balances
Trent Henry's Capital	$ 161,000.00	$   (32,200.00)	$ 128,800.00
Tim Chou's Capital	$ 116,000.00	$   (29,000.00)	$   87,000.00
Gilbert's Capital	$                   -	$    61,200.00	$   61,200.00
Clarke's Capital	$                   -	$    39,300.00	$   39,300.00

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