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pashok25
21 day ago
5

kala and leah partners in best designs have capital balances of $40,000 and $60,000 respectively. adam joins the partnership by

buying one-half of kala's interest for $30,000. in addition, because of adam's outstanding sales skills, the partners agree to increase his interest to 40% if he invests another $10,000. the income-sharing ratio for kala, leah, and adam is 4:3:1. a) journalize the entries to record the admission of adam to the partnership. b) immediately after adam's admission to the partnership, leah sells one-fourth of her interest to denton for $35,000. journalize the entry to record the transaction.
Business
2 answers:
arsen [3.4K]21 day ago
6 0

Answer:

The solution to the subsequent problem is presented below.

Explanation:

a) Journalize the entries to document Adam's admission into the partnership.

Account Title                                                                          Dr            Cr

Kala, Capital                                                                         20,000

Adam, Capital                                                                                       20,000

Cash                                                                                      10,000

Kala, Capital                                                                                           8,000

Leah, Capital                                                                         6,000

Adam, Capital                                                                                        24,000

b) Following Adam's entrance into the partnership, Leah sells one-fourth of her interest to Denton for $35,000. Journalize the entry for this transaction.

Account Title                                                                          Dr            Cr

Leah, Capital                                                                        13,500

Denton, Capital                                                                                    13,500

Free_Kalibri [3.7K]21 day ago
6 0

Answer:

Please refer to the attached document for the answer

Explanation:

Download docx
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