Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. e1211 joanna wang is admitted to a partnership. pr

E1211 Joanna Wang is admitted to a partnership. Prior to the admission of Wang, the...

60.1K

Verified Solution

Question

Accounting

E1211 Joanna Wang is admitted to a partnership. Prior to the admission of Wang, the partnership books show Tanya Wirds Capital balance at $79,000 and Alan Baless Capital balance at $39,500. Wird and Bales share profits and losses equally.
Required
1. Compute the amount of each partners equity on the books of the new partnership under each of the following plans:
(a) Wang purchases Baless interest in the business, paying $47,250 directly to Bales.
(b) Wang invests $39,500 to acquire a one-fourth interest in the partnership.
(c) Wang invests $71,500 to acquire a one-fourth interest in the partnership.
2. Make the partnership journal entry on March 4 to record the admission of Wang under plans (a),(b), and (c) in Requirement 1. Explanations are not required

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students