Hu Marcos and Letterman share income on a 6:3:1 basis. They have capital balances of $80000 $60000 and $45000 respectively when Buffett is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Buffett into the partnership if Buffett purchases one-half of Hu's equity for $45000; one-half of Marcos's equity for $22000; and one-third of Letterman's equity for $18000.

Question

Quizplus · Accepted Answer

The Answer of Hu Marcos and Letterman share income on a 6:3:1 basis. They have capital balances of $80000 $60000 and $45000 respectively when Buffett is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Buffett into the partnership if Buffett purchases one-half of Hu's equity for $45000; one-half of Marcos's equity for $22000; and one-third of Letterman's equity for $18000.

Hu Marcos and Letterman Share Income on a 6:3:1 Basis