Journalize the admission of terrell under each of the


At April 30, partners' capital balances in PDL Company are G. Donley $49,400, C. Lamar $50,800, and J. Pinkston $15,400. 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.

(1)Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $17,000 in cash.(2)Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $14,600 in cash.(3)Terrell invests $60,400 for a 30% ownership interest, and bonuses are given to the old partners.(4)Terrell invests $42,600 for a 30% ownership interest, which includes a bonus to the new partner.

lamar's capital balance is $33,800 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?

(1) Terrell's cash investment $

(2) Bonus to new partner

Please help with me this assignment and keep to format from being to confusing

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Journalize the admission of terrell under each of the
Reference No:- TGS02561450

Now Priced at $10 (50% Discount)

Recommended (98%)

Rated (4.3/5)