a ex 189 hu marcos and letterman share income on a 6 3 1 basis they have capital bal 4325039

aEx. 189

Hu, Marcos, and Letterman share income on a 6:3:1 basis. They have capital balances of $80,000, $60,000, and $45,000, respectively, when Buffett is admitted to the partnership.

Instructions

Prepare the journal entry to record the admission of Buffett into the partnership if Buffett purchases one-half of Hu’s equity for $45,000; one-half of Marcos’s equity for $22,000; and one-third of Letterman’s equity for $18,000.

aEx. 190

Yuanne Sipp and Letitia Grimes share partnership income on a 3:2 basis. They have capital balances of $560,000 and $280,000, respectively, when Tammy Tuck is admitted to the partnership.

Instructions

Prepare the journal entry to record the admission of Tammy Tuck under each of the following assumptions:

(a)Tuck invests $320,000 for a 25% ownership interest.

(b)Tuck invests $220,000 for a 25% ownership interest.

(c)Tuck invests an amount that gives him a 25% ownership interest.

 

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