Tim Tarrant and Jim Edmonds Share Partnership Profit on a 3:2

question 81

Essay

Tim Tarrant and Jim Edmonds share partnership profit on a 3:2 basis. They have capital balances of $170,000 and $90,000, respectively, when JT Ryder is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Ryder under each of the following assumptions:
a. Ryder invests $100,000 for a 25% ownership interest.
b. Ryder invests $40,000 for a 25% ownership interest.
c. Ryder invests an amount that gives him a 20% ownership interest.

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Definitions:

Multiple Structures

The existence or application of various organizational models or frameworks within a single company or system.

Decentralized

The distribution of authority, decision-making, or resources away from a central location or governing body, allowing for more local or individual control.

Highly

Describes something of great importance, to a great degree, or with intense quality.

Rules

Guidelines or principles that govern conduct within a particular context or system.