Problem 12-4A At April 30, partners’ capital balances in PDL Company are: G. Donley $47,300, C. Lamar $46,200,
esolutionsProblem 12-4A
At April 30, partners’ capital balances in PDL Company are: G. Donley $47,300, C. Lamar $46,200, and J. Pinkston $17,200. 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.
Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1) | Terrell purchases 50% of Pinkston’s ownership interest by paying Pinkston $15,110 in cash. | |
(2) | Terrell purchases 331/3% of Lamar’s ownership interest by paying Lamar $14,630 in cash. | |
(3) | Terrell invests $64,000 for a 30% ownership interest, and bonuses are given to the old partners. | |
(4) | Terrell invests $41,700 for a 30% ownership interest, which includes a bonus to the new partner. |
No. | Account Titles and Explanation | Debit | Credit | ||||||||||||||||||||||||||
1. |
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If Emig’s capital balance after Posada’s withdrawal is $39,914, what were the total bonus to the remaining partners and the cash paid by the partnership to Posada?
Total bonus | $ | |
Cash paid to Posada | $ |
10 years ago
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