J witt and K . torres are parnter in whole earth consultanta. Witt and Torres sh

Question

J witt and K . torres are parnter in whole earth consultanta. Witt and Torres share income equall. L jenkins will be admitted to the partnership . Prior to the admission equipment was revalued downward by $12,000. The capital balances of each parnter are 106,000 and 141,000 respectively prior to the revaluation. a. provide the jounrnal enrty for th assets revaluation b provide the journal entry for jenkin admission under the following independent situations 1. jenkin purchased a 20% inteerest for 45,000 2. jenkin purchased a 30% interest for 135,000

Explanation / Answer

Hi, If you like my answer, please rate my answer first and according to my answer...that way only I can earn points. Thanks Total initial capital = $106000 + 141000 = $247000 1) 20% interest cost = $247000 * 20% = $49400 Cash ... Dr = 45000 Loss ... Dr = 4400 Capital ... Cr= 49400 2) 20% interest cost = $247000 * 20% = $74100 Capital.... Cr = 74100 Cash ... Dr = 135000 Profit...Cr = $60900

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