Hoy, Lever, and Stone share income on a 6:3:1 basis. They have capital balances of $80,000, $60,000, and $45,000, respectively, when Morton is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Morton into the partnership if Morton purchases one-half of Hoy's equity for $45,000; one-half of Lever's equity for $22,000; and one-third of Stone 's equity for $18,000.

Question

Quizplus · Accepted Answer

The Answer of Hoy, Lever, and Stone share income on a 6:3:1 basis. They have capital balances of $80,000, $60,000, and $45,000, respectively, when Morton is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Morton into the partnership if Morton purchases one-half of Hoy's equity for $45,000; one-half of Lever's equity for $22,000; and one-third of Stone 's equity for $18,000.

Hoy, Lever, and Stone Share Income on a 6:3:1 Basis