The Josetti Partnership has total partners’ equity of $558,000, which is made up of Dopke, Capital,...

Question

The Josetti Partnership has total partners’ equity of $558,000, which is made up of Dopke, Capital, $392,000, and Hughes, Capital, $166,000. The partners share net income and loss in a ratio of 85% to Dopke and 15% to Hughes. On November 1, Nillsen is admitted to the partnership and given a 10% interest in equity and a 10% share in any income and loss. Prepare the journal entry to record the admission of Nillsen under each of the following separate assumptions: Nillsen invests cash of
(1) $62,000;
(2) $97,000; and
(3) $32,000.

Robert · Accepted Answer

(a) Journal Entry: 
Transaction General Journal Debit Credit
1 Cash 62,000   
         To Nillsen, Capital   62,000
2 Cash 97,000   
         To Nillsen, Capital   65,500 
         To Dopke, Capital   26,775 
         To Hughes, Capital   4,725
3 Cash 32,000   
   Dopke, Capital 22,

The Josetti Partnership has total partners’ equity of $558,000, which is made up of Dopke, Capital, $392,000, and Hughes, Capital, $166,000. The partners share net income and loss in a ratio of 85% to...

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