..ooo Inland Cel 6:20 PM 5396 edugen.wileyplus.com Problem 12-4A (Part Level Sub
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..ooo Inland Cel 6:20 PM 5396 edugen.wileyplus.com Problem 12-4A (Part Level Submission) At April 30, partners' capital balances in PDL Company are G. Donley $51,000, C. Lamar $49,400, and . Pinkston $21,600. The income sharing ratios are 5:4:1, respectively. On May 1, the PDLT Company is formed by admitting . 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. Round answers to O decimal places, e.g. 5,275.) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $15,600 in cash. (2) Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $14,400 in cash. Terrell invests $62,200 for a 30% ownership interest, and bonuses are given to the old partners Terrell invests $41,000 for a 30% ownership interest, which includes a bonus to the new partner. 4) Attempts: 0 of 3 used FOR LAEExplanation / Answer
SOLUTION:
No. Account title & explanation Debit Credit 1 J. Pinkston , Capital 10,800 J. Terrell Capital 10,800 (21600/2) 2 C. Lamar , Capital 16,467 J. Terrell Capital 16,467 (49400*1/3) 3 Cash 62,200 G. Donley, Capital 3,470 C. Lamar , Capital 2,776 J. Pinkston, Capital 694 J. Terrell 55,260 (51,000 + 49,400 + 21,600 + 62,200) * 30% 62200-55260 = 6940 6940*5/10; 6940*4/10; 6940*1/10 4 Cash 41,000 G. Donley, Capital 3,950 C. Lamar , Capital 3,160 J. Pinkston, Capital 790 J. Terrell 48,900 (51,000 + 49,400 + 21,600 + 41,000) * 30% (48900 - 41000)*5/10; (48900 - 41000)*5/10 (48900 - 41000)*1/10Related Questions
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