On January 1, 2021, Lamb and Mona LLP Admitted Norris

question 15

Essay

On January 1, 2021, Lamb and Mona LLP admitted Norris to a 20% interest in net assets for an investment of $50,000 cash. Prior to the admission of Norris, Lamb and Mona had net assets of $100,000 and an income-sharing ratio of 25% to Lamb and 75% to Mona. After the admission of Norris, the partnership contract included the following provisions:Salary of $40,000 a year to Norris.Remaining net income in ratio Lamb 20%, Mona 60%, Norris 20%.During the fiscal year ended December 31, 2021, the partnership had income of $90,000 prior to recognition of salary to Norris.Record the journal entry for the admission of Norris. Goodwill is not to be recorded.

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Definitions:

Psychodynamic Therapist

A mental health professional who applies psychodynamic theories to help patients explore the psychological roots of their emotional distress.

Emotional Detachment

Emotional detachment refers to a state or ability to distance oneself emotionally from other people or situations that might otherwise cause emotional involvement.

Therapeutic Approach

A method used in counseling or therapy to treat psychological disorders and improve mental health.

Client-centered Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes the importance of the therapist's unconditional positive regard, empathy, and genuineness in facilitating a client's self-understanding and personal growth.