The Josetti Partnership has total partners\' equity of $640,000, which is made u

Question

The Josetti Partnership has total partners' equity of $640,000, which is made up of Dopke, Capital, $448,000, and Hughes, Capital, $192,000. The partners share net income and loss in a ratio of 74% to Dopke and 26% to Hughes. On November 1, Nillsen is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss. Prepare the journal entry to record the admission of Nillsen under each of the following separate assumptions (Round your answers to the nearest dollar amount

Nillsen invests cash of $160,000

Nillsen invests cash of $195,000

Nillsen invests cash of $130,000

Explanation / Answer

74%*.8 = 59.2% Dopke 74%*.8 = 20.8% Hughes 20% Nillsen Total Capital = 448,000 + 192,000 = 640,000 + Nillsen's Investment TC = 800,000 Dopke = 800,000 * 59.2% = $473,600 (+25600) Hughes = 800,000 * 20.8% = $166,400 (-25600) Nillsen = 800,000 * 20% = $160,000 (0) Debit Cash 160,000 Debit Hughes Capital 25,600 Credit Dopke Capital 25,600 Credit Nillsen Capital 160,000 TC = 835,000 Dopke = 835,000 * 59.2% = $494,320 (+46320) Hughes = 835,000 * 20.8% = $173,680 (-18320) Nillsen = 835,000 * 20% = $167,000 (-28000) Debit Cash 195,000 Debit Hughes Capital 18,320 Credit Dopke Capital 46,320 Credit Nillsen Capital 167,000 TC= 770,000 Dopke = 770,000 * 59.2% = $455,840 (+7840) Hughes = 770,000 * 20.8% = $160,160 (-31840) Nillsen = 770,000 * 20% = $154,000 (-24000) Debit Cash 130,000 Debit Hughes Capital 31,840 Credit Dopke Capital 7,840 Credit Nillsen Capital 154,000

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