Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%

Question

Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $112,000, $67,000, and $49,000, respectively

(a)

Assume Garrett joins the partnership by investing $91,200 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $112,000, $67,000, and $49,000, respectively

Explanation / Answer

Cash 91200      Garrett, capital 79800 =(112000+67000+49000+91200)*25%      Foss, capital 5700 =(91200-79800)*50%      Albertson, capital 3420 =(91200-79800)*30%      Espinosa, capital 2280 =(91200-79800)*20%

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