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.

---

Definitions:

Conversation Thread

A sequence of messages or comments on a particular subject, displayed together in a cohesive online or electronic dialogue.

Attachment

A file or document that is added to and sent along with an email or other electronic message.

Sender's Name

The name or identity of the individual or entity sending a message, document, or package.

E-Mail Message

A digital form of communication sent from one computer user to one or more recipients via a network.