BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Admitting new partners

Myles Eller and Crystal Santori are partners who share in the income equally and have capital balances of $210,000 and 562,500, respectively. Etter, with the consent of Santori, sells one-third of his interest to Lonnie Davis. What entry is required by the partnership if the sales price is (a) 560,000? (b) $80,000?

To determine

Partnership

It is that form of organization which is owned and managed by two or more persons who invest and share the profits and losses according to a pre-determined ratio.

Forming a Partnership

While forming the partnership, the contribution of assets by partners are debited to the partnership assets account; whereas the liabilities of the partnerships are credited to the partnership’s liabilities account, and the net amount of the investments of partners are credited to the partners’ individual capital account.

(a) and (b)

To record:  The journal entry by the partnership, when the sale price is $60,000 and $80,000.

Explanation

Working Capital:

E sold one-third of his interest to D       ($210,000 × 1

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

In what ways is economics a science?

Principles of Microeconomics (MindTap Course List)

Explain how a change in sales mix can change a companys break-even point.

Managerial Accounting: The Cornerstone of Business Decision-Making

Suppose interest rates on residential mortgages of equal risk are 5.5% in California and 7.0% in New York. Coul...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are the key provisions of SOX?

Pkg Acc Infor Systems MS VISIO CD