Petra Stone and Pam Peach are partners who share profit on a 3:2 basis, and on July 1, their capital account balances are $ 165,000 and $ 136,000 respectively. On July 1, Bobby Jo is admitted to the partnership.
Instructions
Prepare the entry to record Bobby's admission to the partnership under the following independent situations:
a) Bobby purchases 50% of Petra's partnership interest from him for $ 115,000.
b) Bobby purchases a 1/3 interest in the partnership by contributing cash of $ 96,500.
c) Bobby purchases a 1/3 interest in the partnership by contributing cash of $ 167,900.

Question

Quizplus · Accepted Answer

The Answer of Petra Stone and Pam Peach are partners who share profit on a 3:2 basis, and on July 1, their capital account balances are $ 165,000 and $ 136,000 respectively. On July 1, Bobby Jo is admitted to the partnership.
Instructions
Prepare the entry to record Bobby's admission to the partnership under the following independent situations:
a) Bobby purchases 50% of Petra's partnership interest from him for $ 115,000.
b) Bobby purchases a 1/3 interest in the partnership by contributing cash of $ 96,500.
c) Bobby purchases a 1/3 interest in the partnership by contributing cash of $ 167,900.

Petra Stone and Pam Peach Are Partners Who Share Profit