Floyd and Merriam Start a Partnership Business on June 12

question 40

Short Answer

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: They agreed to admit Ramelow into the business for a one-fifth interest in the new partnership. Ramelow contributes $27,000 cash in exchange for the partnership interest. Assume that Floyd and Merriam shared profits and losses in a 3:1 ratio before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?

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Definitions:

Ancestors

Direct family members from previous generations, from whom a person is descended.

Positive Emotions

Feelings that are generally beneficial and enjoyable, such as happiness, joy, and love, which contribute to psychological well-being and quality of life.

Hours of the Day

The divisions of the day into specific, equal segments used for the purpose of timekeeping and activity planning.

Personal Emotions

involve individual feelings that are experienced as a response to stimuli and are inherently subjective and personal.