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Business, 18.07.2020 19:01 marissasabino111
The capital accounts of Trent Henry and Tim Chou have balances of $145,500 and $98,300, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $29,100 and one-fourth of Chou’s interest for $19,500. Clarke contributes $74,500 cash to the partnership, for which she is to receive an ownership equity of $74,500.
Required:
A. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the Chart of Accounts for exact wording of account titles.
B. What are the capital balances of each partner after the admission of the new partners?
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Answers: 3
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The capital accounts of Trent Henry and Tim Chou have balances of $145,500 and $98,300, respectively...
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