Exercise 12-11 (Aigo) Admission of new partner LO P3
The Struter Partnership has a total partners' equity of $640,000, which is made up of Main Capital, $448,000, and Frist Capital, $192,000. The partners share net income and loss in a ratio of 73% to Main and 27% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption.
Record the admission of Adison with an investment of $160,000 for a 20% interest in the equity and a 20% share in any income and loss.
Record the admission of Adison with an investment of $195,000 for a 20% interest in the equity and a 20% share in any income and loss.
Record the admission of Adison with an investment of $130,000 for a 20% interest in the equity and a 20% share in any income and loss.
View transaction list
General Journal
A
(1)
Cash Adison Capital
Debit
Credit
160,000
160,000
T
(2)
Cash Main Capital Frist Capital Adison Capital
Debit
Credit
195,000
167,000
G
(3)
Cash Main Capital Frist Capital
Debit
Credit
130,000
154,000