A and B are partners with initial investment of $60,000 and $40,000 respectively. They share income and loss by 60% for A and 40% for B. They accepted C as a new partner in the partnership. Required: Record the admission of C under each of the following separate assumptions: (1) C purchased one-half of A's interest for $35,000 cash (2) C invests cash of $40,000 in the partnership and receives 25% ownership interest in the new partnership. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE BETWEEN NUMBERS Dr Cash 100000 Cr. Land 100000
A and B are partners with initial investment of $60,000 and $40,000 respectively. They share income and loss by 60% for A and 40% for B. They accepted C as a new partner in the partnership. Required: Record the admission of C under each of the following separate assumptions: (1) C purchased one-half of A's interest for $35,000 cash (2) C invests cash of $40,000 in the partnership and receives 25% ownership interest in the new partnership. YOUR ANSWER SHOULD BE IN THE FOLLOWING FORM; DO NOT USE BETWEEN NUMBERS Dr Cash 100000 Cr. Land 100000
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 20P
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Transcribed Image Text:A and B are partners with initial investment of
$60,000 and $40,000 respectively. They
share income and loss by 60% for A and 40%
for B. They accepted C as a new partner in the
partnership. Required: Record the admission
of C under each of the following separate
assumptions: (1) C purchased one-half of A's
interest for $35,000 cash (2) C invests cash of
$40,000 in the partnership and receives 25%
ownership interest in the new partnership.
YOUR ANSWER SHOULD BE IN THE
FOLLOWING FORM; DO NOT USE BETWEEN
NUMBERS Dr Cash 100000 Cr. Land 100000
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ISBN:
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Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT