Paul,Quinn,and Ralph Have Equities in a Partnership of $120,000,$180,000,and $100,000,respectively,and

question 58

Essay

Paul,Quinn,and Ralph have equities in a partnership of $120,000,$180,000,and $100,000,respectively,and share income in a ratio of 2:1:2,respectively.The partners have agreed to admit Sandy to the partnership.Prepare entries in journal form without explanations to record the admission of Sandy to the partnership under each of the following assumptions:
a.Sandy invests $100,000 for a 30 percent interest,and a bonus is recorded for Sandy.
b.Sandy invests $150,000 for a one-fifth interest,and a bonus is recorded for the old partners.

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Definitions:

Supermarkets

Large retail market establishments that sell a wide variety of goods, primarily food and grocery items, but often also household goods.

Trade-In Allowance

The amount a seller offers to reduce the cost of a new item when a customer gives back an old item as part of the transaction.

List Price

The advertised price of a product or service before any discounts or promotions are applied.

New Car Dealer

A business that specializes in selling new automobiles, often featuring a specific brand or range of vehicle models.