The JKLM Partnership has the following balance sheet at January 1, 2018, prior to the admission of new partner, Ruiz. Cash and current assets $81,000 Land 230,000 Building and equipment 122,000 Total $433,000 Liabilities $77,000 Capital, Johnson 53,000 Capital, Kelly 75,000 Capital, Lopez 46,000 Capital, Mason 182,000 Total $433,000 Ruiz contributes $50,000 into the partnership for a 20% interest. The four original partners share profits and losses equally. Required: Using the bonus method, do the following: Prepare the journal entry to record the admission of Ruiz into the partnership.
The JKLM Partnership has the following balance sheet at January 1, 2018, prior to the admission of new partner, Ruiz.
Cash and current assets $81,000
Land 230,000
Building and equipment 122,000
Total $433,000
Liabilities $77,000
Capital, Johnson 53,000
Capital, Kelly 75,000
Capital, Lopez 46,000
Capital, Mason 182,000
Total $433,000
Ruiz contributes $50,000 into the partnership for a 20% interest. The four original partners share
Required:
Using the bonus method, do the following:
- Prepare the
journal entry to record the admission of Ruiz into the partnership.
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