Meir, Benson, and Lau are partners and share income and loss ina 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; and Lau, 50%).The partnership's capital balances are as follows: Meir, $38,000;Benson, $159,000; and Lau, $203,000. Benson decides to withdrawfrom the partnership.
2. Assume that Benson does not retire from the partnershipdescribed in Part 1. Instead, Rhode is admitted to the partnershipon February 1 with a 25% equity. Prepare journal entries to recordRhode’s entry into the partnership under each separate assumption:Rhode invests (a) $133,333; (b) $97,333; and (c) $174,666. .
Record the admission of Rhode with an investment of $97,333 fora 25% interest in the equity.
Record the admission of Rhode with an investment of $174,666 fora 25% interest in the equity.
