Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the struter partnership has total partners' equity

The Struter Partnership has total partners' equity of $380,000, which is made up of Main,...

60.1K

Verified Solution

Question

Accounting

The Struter Partnership has total partners' equity of $380,000, which is made up of Main, Capital, $266,000, and Frist, Capital, $114,000. The partners share net income and loss in a ratio of 74% to Main and 26% 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 independent assumption.

(1) Record the admission of Adison with an investment of $95,000 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 $130,000 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 $65,000 for a 20% interest in the equity and a 20% share in any income and loss.

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