The Struter Partnership has total partners equity of 320000

The Struter Partnership has total partners\' equity of $320,000, which is made up of Main, Capital, $224,000, and Frist, Capital, $96,000. The partners share net income and loss in a ratio of 76% to Main and 24% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss.

Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under the following independent assumptions.

(1) Record the admission of Adison with an investment of $80,000 for a 20% interest in the equity and a 20% share in any income and loss.

(2) Record the admission of Adison with an investment of $115,000 for a 20% interest in the equity and a 20% share in any income and loss.

(3) Record the admission of Adison with an investment of $50,000 for a 20% interest in the equity and a 20% share in any income and loss.

Record the admission of Madison with an investment of $80,000 for a 20% interest in the equity and a 20% share in any income and loss.

Record the admission of Madison with an investment of $115,000 for a 20% interest in the equity and a 20% share in any income and loss.

Record the admission of Madison with an investment of $50,000 for a 20% interest in the equity and a 20% share in any income and loss.

Transaction	General Journal	Debit	Credit
(1)

Solution

(1) Record the admission of Adison with an investment of $80,000 for a 20% interest in the equity and a 20% share in any income and loss Total Capital after Admission of Adison =$224,000+$96000+$80,000 =$400000 Adison share of 20% interest in Capital =$400,000*0.20 =$80,000 Journal Entry Date Account titles & Explanation Debit Credit Nov-01 Cash A/c $80000         To Adison Capital A/c $80000 (Being Admision of Adison for 20% interest in capital has been recorded) (2) Record the admission of Adison with an investment of $115,000 for a 20% interest in the equity and a 20% share in any income and loss Total Capital after Admission of Adison =$224,000+$96000+$115,000 =$435000 Adison share of 20% interest in Capital =$435,000*0.20 =$87,000 Excess amount paid inexcess of 20% share in capital =$115000-$87000 =$28000 $28000 amount of excess cash , share of Main =$28000*76% =$21280 $28000 amount of excess cash , share of First =$28000*24% =$6720 Journal Entry Date Account titles & Explanation Debit Credit Nov-01 Cash A/c $$115000         To Adison Capital A/c $87000          To Main Capital A/c $21280           To First capital A/c $6720 (Being Admision of Adison for 20% interest in capital has been recorded) (3) Record the admission of Adison with an investment of $50,000 for a 20% interest in the equity and a 20% share in any income and loss Total Capital after Admission of Adison =$224,000+$96000+$50,000 =$370,000 74000 Adison share of 20% interest in Capital =$370,000*0.20 =$74,000 Excess amount get in capital inexcess of cash paid =$74000-$50000 =$24000 $24000 amount of excess capital , share of Main =$28000*76% =$18240 $24000 amount of excess capital , share of First =$28000*24% =$5760 Journal Entry Date Account titles & Explanation Debit Credit Nov-01 Cash A/c $50000 Main Capital A/c $18240 First capital A/c $5760         To Adison Capital A/c $74000 (Being Admision of Adison for 20% interest in capital has been recorded)