Tim Tarrant and Jim Edmonds share partnership profit on a 3:2 basis. They have capital balances of $170,000 and $90,000, respectively, when JT Ryder is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Ryder under each of the following assumptions:
a. Ryder invests $100,000 for a 25% ownership interest.
b. Ryder invests $40,000 for a 25% ownership interest.
c. Ryder invests an amount that gives him a 20% ownership interest.

Question

Quizplus · Accepted Answer

The Answer of Tim Tarrant and Jim Edmonds share partnership profit on a 3:2 basis. They have capital balances of $170,000 and $90,000, respectively, when JT Ryder is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Ryder under each of the following assumptions:
a. Ryder invests $100,000 for a 25% ownership interest.
b. Ryder invests $40,000 for a 25% ownership interest.
c. Ryder invests an amount that gives him a 20% ownership interest.

Tim Tarrant and Jim Edmonds Share Partnership Profit on a 3:2