Jim Welch and Sam Thayer share partnership income on a 3:2 basis. They have capital balances of $560,000 and $280,000, respectively, when Bill Ryan is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Ron Ryan under each of the following assumptions:
(a) Ryan invests $340,000 for a 25% ownership interest.
(b) Ryan invests $200,000 for a 25% ownership interest.
(c) Ryan invests an amount that gives him a 25% ownership interest.

Question

Quizplus · Accepted Answer

The Answer of Jim Welch and Sam Thayer share partnership income on a 3:2 basis. They have capital balances of $560,000 and $280,000, respectively, when Bill Ryan is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Ron Ryan under each of the following assumptions:
(a) Ryan invests $340,000 for a 25% ownership interest.
(b) Ryan invests $200,000 for a 25% ownership interest.
(c) Ryan invests an amount that gives him a 25% ownership interest.

Jim Welch and Sam Thayer Share Partnership Income on a 3:2