Check my work Required information Part 2 of 2 The following

Check my work Required information Part 2 of 2 The following information applies to the questions displayed below.] 1.9 points Meir, Benson, and Lau are partners and share income and loss in a 3:2:5 ratio. The partnership\'s capital balances are as follows: Meir, $118,000; Benson, $79,000; and Lau, $203,000. Benson decides to withdraw from the partnership and the partners agree not to have the assets revalued upon Benson\'s retirement. eBook Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhode\'s entry into the partnership under each of the following separate Print Referencesassumptions: Rhode invests (a) $133,333; (b) $97,333; and (c) $174,666. (Do not round your intermediate calculations.) View transaction list Journal entry worksheet 2 Record the admission of Rhode with an investment of $133,333 for a 25% interest in the equity Mc Graw Neyt

Solution

Meir 118000 Benson 79000 Lau 203000 Total Capital 400000 (a) Rhode brings in $133,333 Total Capital = 400000+133333 = 533333 Rhode\'s share (25%)= 533333*25% = 133333 Hence no bonus is received or paid Entry is Cash A/c 133333 To Rhode Capital A/c 133333 (b) Rhode brings in $97333 Total Capital = 400000+97333 = 497333 Rhode\'s share (25%)= 497333*25% = 124333 There is bonus to new partner Bonus= 124333-97333 = 27000 Entry is Cash A/c 97333 Meir Capital A/c (27000/10*3) 8100 Benson Capital A/c (27000/10*2) 5400 Lau Capital A/c (27000/10*5) 13500 To Rhode Capital A/c 124333 (\'c) Rhode brings in $174666 Total Capital = 400000+174666 = 574666 Rhode\'s share (25%)= 574666*25% = 143666 There is bonus to old partner in this case Bonus= 143666-174666 = -31000 Entry is Cash A/c 174666 To Meir Capital A/c (31000/10*3) 9300 Benson Capital A/c (31000/10*2) 6200 Lau Capital A/c (31000/10*5) 15500 To Rhode Capital A/c 143666