Yon Haggerdorf and Sue Lee, who have ending capital balances of $80,000 and $60,000, respectively, agree to admit two new partners to their business on April 1, 20--. Carlos Sanchez will buy 1/4 of Haggerdorf's equity interest for $20,000 and 1/3 of Lee's equity interest for $25,000 directly from the partners. Carmen Della will invest $30,000 in the business for which she is to receive a $30,000 equity interest.
Required:
a.
Prepare general journal entries showing the above transactions admitting Sanchez and Della to the partnership.
b.
Calculate the ending capital balances for all four partners after the above transactions.

Question

Yon Haggerdorf and Sue Lee, who have ending capital balances of $80,000 and $60,000, respectively, agree to admit two new partners to their business on April 1, 20--. Carlos Sanchez will buy 1/4 of Haggerdorf's equity interest for $20,000 and 1/3 of Lee's equity interest for $25,000 directly from the partners. Carmen Della will invest $30,000 in the business for which she is to receive a $30,000 equity interest.
Required:
a.
Prepare general journal entries showing the above transactions admitting Sanchez and Della to the partnership.
b.
Calculate the ending capital balances for all four partners after the above transactions.
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Quizplus · Accepted Answer

The Answer of Yon Haggerdorf and Sue Lee, who have ending capital balances of $80,000 and $60,000, respectively, agree to admit two new partners to their business on April 1, 20--. Carlos Sanchez will buy 1/4 of Haggerdorf's equity interest for $20,000 and 1/3 of Lee's equity interest for $25,000 directly from the partners. Carmen Della will invest $30,000 in the business for which she is to receive a $30,000 equity interest.
Required:
a.
Prepare general journal entries showing the above transactions admitting Sanchez and Della to the partnership.
b.
Calculate the ending capital balances for all four partners after the above transactions.
​

Yon Haggerdorf and Sue Lee, Who Have Ending Capital Balances