Palmer has S103500 capital and Haye has S55500 capital in th

Palmer has S103,500 capital and Haye has S55,500 capital in the Palmer & Haye partnership. Palmer and Haye share profits and losses equally. Steven Picker contributes cash of S53,000 to acquire a 1/4 interest in the new partnership. Requirements 1.Calculate Picker\'s capital in the new partnership. 2. Journalize the partnership\'s receipt of the S53,000 from Picker Requirement 1. Calculate Picker\'s capital in the new partnership. (Leave unused cells blank. Do not enter a·0-for a zero balance.) Partnership capital before admission of new partner Contribution of new partner Partnership capital after admission of new partner Capital of new partner Bonus to Requirement 2. Joumalize the partnership\'s receipt of the $53,000 from Picker. (Record debits first, then credits. Select the explanation on the last line of the jounal entry table) Date Accounts and Explanation Debit Credit

Solution

Partner Capital Before admission of Newpartner 159000 Contribution of new partner 53000 Partner capital after admission of newpartner 212000 Capital Of newpartner 21000*1/4 53000 Bonus to new Partner 0 Debit Credit Cash 53000 Picker ,Capital 53000 (Cash recived for admission of new Partner)