Higgins is admitted to the partnership of Rengel & Novak. Prior to her admission, the partnership books show Rengel's capital balance at $160,000 and Novak's at $80,000. Assume Rengel and Novak share profits and losses equally. Read the requirements. Requirement 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. Begin by computing the partner's equity base for plan a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. (Enter a share for each partner. Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Enter negative amounts with a parentheses or minus sign.) Plan A Rengel Novak Higgins Plan A: Partnership capital before admission of Higgins Requirements Plan A: Effect on capital balance as a result of admission of Higgins Plan A: Partnership capital after admission of Higgins 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. b. Higgins contributes $80,000 to acquire a 1/4 interest in the partnership. c. Higgins contributes $130,000 to acquire a 1/4 interest in the partnership. 2. Journalize the entries for admitting the new partner under plans a, b, and c. Print Done
Higgins is admitted to the partnership of Rengel & Novak. Prior to her admission, the partnership books show Rengel's capital balance at $160,000 and Novak's at $80,000. Assume Rengel and Novak share profits and losses equally. Read the requirements. Requirement 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. Begin by computing the partner's equity base for plan a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. (Enter a share for each partner. Complete all answer boxes. For accounts with a $0 balance, make sure to enter "0" in the appropriate cell. Enter negative amounts with a parentheses or minus sign.) Plan A Rengel Novak Higgins Plan A: Partnership capital before admission of Higgins Requirements Plan A: Effect on capital balance as a result of admission of Higgins Plan A: Partnership capital after admission of Higgins 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. b. Higgins contributes $80,000 to acquire a 1/4 interest in the partnership. c. Higgins contributes $130,000 to acquire a 1/4 interest in the partnership. 2. Journalize the entries for admitting the new partner under plans a, b, and c. Print Done
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:Higgins is admitted to the partnership of Rengel & Novak. Prior to her admission, the partnership books show Rengel's capital balance at $160,000 and Novak's at $80,000. Assume Rengel and Novak share profits and losses
equally.
Read the requirements.
.... .
Requirement 1. Compute each partner's equity on the books of the new partnership under the following plans: a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly.
Begin by computing the partner's equity base for plan a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly. (Enter a share for each partner. Complete all answer boxes. For accounts with a $0 balance, make sure
to enter "0" in the appropriate cell. Enter negative amounts with a parentheses or minus sign.)
Plan A
Rengel
Novak
Higgins
Plan A: Partnership capital before admission of Higgins
Requirements
Plan A: Effect on capital balance as a result of admission of Higgins
Plan A: Partnership capital after admission of Higgins
1. Compute each partner's equity on the books of the new partnership under the
following plans:
a. Higgins pays $95,000 for Novak's equity. Higgins pays Novak directly.
b. Higgins contributes $80,000 to acquire a 1/4 interest in the partnership.
c. Higgins contributes $130,000 to acquire a 1/4 interest in the partnership.
2. Journalize the entries for admitting the new partner under plans a, b, and c.
Print
Done
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ISBN:
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Author:
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