Jackie Thompson and Rick Chung 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, Betty Lo is admitted to the partnership.
Instructions
Prepare the entry to record Betty's admission to the partnership under the following independent situations:
a. Betty purchases 50% of Jackie's partnership interest from him for $115,000.
b. Betty purchases a 1/3 interest in the partnership by contributing cash of $96,500.
c. Betty purchases a 1/3 interest in the partnership by contributing cash of $167,900.

Question

Quizplus · Accepted Answer

The Answer of Jackie Thompson and Rick Chung 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, Betty Lo is admitted to the partnership.
Instructions
Prepare the entry to record Betty's admission to the partnership under the following independent situations:
a. Betty purchases 50% of Jackie's partnership interest from him for $115,000.
b. Betty purchases a 1/3 interest in the partnership by contributing cash of $96,500.
c. Betty purchases a 1/3 interest in the partnership by contributing cash of $167,900.

Jackie Thompson and Rick Chung Are Partners Who Share Profit