The Brad and Marcia partnership agree to admit Fred with a one-third interest for $10,000.Brad and Marcia's capital balances are $12,000,and $8,000,respectively,and they share profits and losses equally.The entry to admit Fred would include:
A)debit Cash $10,000;credit Fred,Capital $10,000.
B)debit Cash $10,000;credit Brad,Capital $2500;debit Marcia,Capital $2500;credit Fred,Capital $5,000.
C)debit Cash $10,000;credit Brad,Capital $5,000;credit Marcia Capital $5,000.
D)debit Cash $10,000;debit Brad,Capital $2,500;credit Marcia,Capital $2,500;credit Fred,Capital $10,000.

Question

Quizplus · Accepted Answer

Fred is admitted with a one-third interest for $10,000, so the entry would be to debit Cash for $10,000 and credit Fred, Capital for $10,000.

The Brad and Marcia Partnership Agree to Admit Fred with a One-Third