Lauren and Elizabeth are partners.Lauren has a capital balance of $125,000 and Elizabeth has a capital balance of $110,000.Harry invested $100,000 to acquire an ownership interest of 30%.The journal entry to record the receipt of Harry's contribution will ________.

Question

Quizplus · Accepted Answer

Partnership capital before admission of new partner = $125,000 + $110,000 = $235,000
 11ea8873_d4c8_13aa_bb89_1dd5e8efe420_TB5026_00 In this case Harry entered the partnership at a price less than the book value of his equity.
The bonus came to Harry from the other partners so their capital accounts are reduced in the amount of the bonus.

Lauren and Elizabeth Are Partners