Business, 12.03.2020 18:54 bc3286

At April 30, partners’ capital balances in Crane Company are G. Donley $52,200, C. Lamar $49,400, and J. Pinkston $19,800. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner.
(a) Journalize the admission of Terrell under each of the following independent assumptions.

1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $15,400 in cash.
2) Terrell purchases 33 1/3% of Lamar's ownership interest by paying Lamar $15,600 in cash.
3) Terrell invests $60,200 for a 30% ownership interest, and bonuses are given to the old partners.
4) Terrell invests $41,400 for a 30% ownership interest, which includes a bonus to the new partner.

(b) Lamar's capital balance is $38,200 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20 % of total partnership capital, what were (1) Terrell's cash investment and (2) the bonus to the new partner?

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At April 30, partners’ capital balances in Crane Company are G. Donley $52,200, C. Lamar $49,400, an...

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