The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys one-fifth of Hope's interest for $30,000 and one-fourth of Indiana's interest for $20,000. Casey contributes $45,000 cash to the partnership, for which he is to receive an ownership equity of $45,000.Required
(1) Journalize the entries to record the admission of
(a) Clint and
(b) Casey.
(2) What are the capital balances of each partner after the admission of the new partners?

Question

The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys one-fifth of Hope's interest for $30,000 and one-fourth of Indiana's interest for $20,000. Casey contributes $45,000 cash to the partnership, for which he is to receive an ownership equity of $45,000.​Required
(1) Journalize the entries to record the admission of 
(a) Clint and 
(b) Casey.
(2) What are the capital balances of each partner after the admission of the new partners?​

Quizplus · Accepted Answer

The Answer of The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys one-fifth of Hope's interest for $30,000 and one-fourth of Indiana's interest for $20,000. Casey contributes $45,000 cash to the partnership, for which he is to receive an ownership equity of $45,000.​Required
(1) Journalize the entries to record the admission of 
(a) Clint and 
(b) Casey.
(2) What are the capital balances of each partner after the admission of the new partners?​

The Capital Accounts of Hope and Indiana Have Balances of $115,000