Jordan,Kyle,and Noah Have Equities in a Partnership of $100,000,$160,000,and $140,000,respectively,and

question 90

Essay

Jordan,Kyle,and Noah have equities in a partnership of $100,000,$160,000,and $140,000,respectively,and share income in a ratio of 5:3:2,respectively.The partners have agreed to admit Billy to the partnership.Prepare entries in journal form without explanations to record the admission of Billy to the partnership under each of the following assumptions:
a.Billy invests $80,000 for a 25 percent interest,and a bonus is recorded for Billy.
b.Billy invests $160,000 for a one-fifth interest,and a bonus is recorded for the old partners.

---

Definitions:

Equilibrium Quantity

The supply and demand for goods or services at the price point where equilibrium is achieved in a market.

Price

The measure of money anticipated, obligatory, or tendered in payment towards an item.

Equilibrium Price

The cost at which the amount of a product or service that consumers want to buy matches the amount that producers are willing to sell.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where market supply and demand balance.