posted by jessie
please help me to solve this problem.
THANK YOU AND MAY GOD BLESS YOU ALWAYS.
L. Carson agrees to pay $10,000 each to to C. Ames and D. Barker for 1/3 of their interest in the Ames-Barker partnership. At the time of the admission of Carson, each partner has a $30,000 capital balance. Both partners therefore give up $10,000 of their capital equity. (case 1)
Assume that instead of purchasing an interest, Carson invests $30,000 in cash in the Ames-Barker partnership for a 1/3 capital interest. (case 2)
1.provide Journal Entry in Case 1 &the effects of this transaction on the partnership accounts (use t-account)
2.Provide Journal Entry in Case 2 &the effects of this transaction on the partnership accounts (use t-account)
3.Total Capital for
b. Case 2
Here are some sites on journal entries to try: