kala and leah partners in best designs have capital balances of $40,000 and $60,000 respectively. adam joins the partnership by

Question

2 years ago

5

kala and leah partners in best designs have capital balances of $40,000 and $60,000 respectively. adam joins the partnership by

buying one-half of kala's interest for $30,000. in addition, because of adam's outstanding sales skills, the partners agree to increase his interest to 40% if he invests another $10,000. the income-sharing ratio for kala, leah, and adam is 4:3:1. a) journalize the entries to record the admission of adam to the partnership. b) immediately after adam's admission to the partnership, leah sells one-fourth of her interest to denton for $35,000. journalize the entry to record the transaction.

Business

2 answers:

inna [77] · Answer 1 · 2023-06-23T08:35:34+03:00

Answer:

The solution to the following problem is done below.

Explanation:

a) Journalize the entries to record the admission of adam to the partnership.

Account Title Dr Cr

Kala, Capital 20,000

Adam, Capital 20,000

Cash 10,000

Kala, Capital 8,000

Leah, Capital 6,000

Adam, Capital 24,000

b) Immediately after adam's admission to the partnership, leah sells one-fourth of her interest to denton for $35,000. journalize the entry to record the transaction.

Account Title Dr Cr

Leah, Capital 13,500

Denton, Capital 13,500

yarga [219] · Answer 2 · 2023-06-23T09:59:34+03:00

yarga [219]2 years ago

6 0

Answer:

please find the attached for the answer

Explanation:

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