Soo Yung and Saul Gazza agree to admit Millie Hillsberg into their partnership. The balance sheet of Hillsberg's business as of September 30 is shown below: Yung, Gazza, and Hillsberg agree that the amounts reported on Hillsberg's balance sheet are reasonable approximations of market value. Yung and Gazza agree to purchase all business assets, except cash, and all business liabilities were assumed, in exchange for a $55,000 interest in their partnership.
Required:
Prepare the journal entry showing Hillsberg's investment in the partnership of Yung and Gazza, as of October 1, 20--.

Question

Soo Yung and Saul Gazza agree to admit Millie Hillsberg into their partnership. The balance sheet of Hillsberg's business as of September 30 is shown below:  Yung, Gazza, and Hillsberg agree that the amounts reported on Hillsberg's balance sheet are reasonable approximations of market value. Yung and Gazza agree to purchase all business assets, except cash, and all business liabilities were assumed, in exchange for a $55,000 interest in their partnership.
Required:
Prepare the journal entry showing Hillsberg's investment in the partnership of Yung and Gazza, as of October 1, 20--.

Quizplus · Accepted Answer

The Answer of Soo Yung and Saul Gazza agree to admit Millie Hillsberg into their partnership. The balance sheet of Hillsberg's business as of September 30 is shown below:  Yung, Gazza, and Hillsberg agree that the amounts reported on Hillsberg's balance sheet are reasonable approximations of market value. Yung and Gazza agree to purchase all business assets, except cash, and all business liabilities were assumed, in exchange for a $55,000 interest in their partnership.
Required:
Prepare the journal entry showing Hillsberg's investment in the partnership of Yung and Gazza, as of October 1, 20--.

Soo Yung and Saul Gazza Agree to Admit Millie Hillsberg