Yuanne Sipp and Letitia Grimes share partnership income on a 3:2 basis. They have capital balances of $560000 and $280000 respectively when Tammy Tuck is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Tammy Tuck under each of the following assumptions:
(a) Tuck invests $320000 for a 25% ownership interest.
(b) Tuck invests $220000 for a 25% ownership interest.
(c) Tuck invests an amount that gives him a 25% ownership interest.

Question

Quizplus · Accepted Answer

The Answer of Yuanne Sipp and Letitia Grimes share partnership income on a 3:2 basis. They have capital balances of $560000 and $280000 respectively when Tammy Tuck is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Tammy Tuck under each of the following assumptions:
(a) Tuck invests $320000 for a 25% ownership interest.
(b) Tuck invests $220000 for a 25% ownership interest.
(c) Tuck invests an amount that gives him a 25% ownership interest.

Yuanne Sipp and Letitia Grimes Share Partnership Income on a 3:2