Prepare the journal entries showing the above transactions admitting Menendez and Domski to the partnership   b. Calculate the ending capital balances for all four partners after the above transactions. Charlie McBride: Ian Jordan: Paul Menendez: Alice Domski:

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 4CE
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Charlie McBride and Ian Jordan, who have ending capital balances of $90,000 and $40,000 respectively, agree to admit two new partners to their business on May 1, 20--. Paul Menendez will buy 30% of McBride's equity interest for $35,000 and 20% of Jordan's equity interest for $22,000. Alice Domski will invest $38,000 in the business for which sh will receive a $38,000 equity interest.

Required:

a. Prepare the journal entries showing the above transactions admitting
Menendez and Domski to the partnership

 

b. Calculate the ending capital balances for all four partners after the
above transactions.

Charlie McBride:

Ian Jordan:

Paul Menendez:

Alice Domski:

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