Sanjay and Kim started a medical clinic. The partners' equity accounts reflected the following balances...
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Accounting
Sanjay and Kim started a medical clinic. The partners' equity accounts reflected the following balances on January 1, 2023:
Equity Sanjay, Capital $120,000
Kim, Capital $180,000
They share profit/losses equally.
On June 1, 2023, a new partner, Reginal Laos admitted to the partnership with a cash investment of $200,000.
Required
(i): Prepare the journal entry to record the admission of Laos under each of the following unrelated assumptions, where he is given:
(a) 40% interest in equity
(b) 25% interest in equity
Required
(ii): What is the Partnership Equity in $ and % before and after adding Laos, under scenario (b)? Partner $ Before % Before
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