Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. after the tangible assets have been adjusted to cu

After the tangible assets have been adjusted to current market prices, the capital accounts of Brad...

90.2K

Verified Solution

Question

Accounting

After the tangible assets have been adjusted to current marketprices, the capital accounts of Brad Paulson and Drew Webster havebalances of $45,000 and $60,000, respectively. Austin Neel is to beadmitted to the partnership, contributing $30,000 cash to thepartnership, for which he is to receive an ownership equity of$35,000. All partners share equally in income. Required: A. OnDecember 31, journalize the entry to record the admission of Neel,who is to receive a bonus of $5,000. Refer to the Chart of Accountsfor exact wording of account titles. B. What are the capitalbalances of each partner after the admission of the new partner? C.Why are tangible assets adjusted to current market prices, prior toadmitting a new partner?

Answer & Explanation Solved by verified expert
4.3 Ratings (919 Votes)
Solution A On December 31 journalize the entry to record the admission of Neel who is to receive a bonus of 5000 Refer to the Chart of Accounts for exact wording of account titles Date Particulars    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

34 What should be the ratio of minimum to maximum wavelength of radiation emitted by...

Physics
Q

You are considering taking out a loan of $7,000.00 that will be paid back over 10...

Finance
Q

5. A professor theorizes that science students perform differently on multiple choice tests than on essay...

Statistics
Q

Imagine you want to get rich by genetically engineering tobacco plants to produce cann insert...

Biology
Q

At a given instant say t 0 two radioactive substance A B have equal activities...

Physics
Q

STATEMENT 1 A vertical iron rod has a coil of wire wound over it at...

Physics
Q

a r t b r t and c r t r t 19 r t...

Calculus
Q

State what additional information is required in order to know that the triangles are congruent...

Algebra
Q

If three more than twice x is added to x divided by 4 what is...

Algebra
Q

Blossom Ice Fishing Limited purchased ice fishing huts on December 1,2023, for $123,000 cash. At...

Accounting
Q

10. Which of the following managerial functions involves a detailed financial and operational description...

Accounting
Q

75) An appraiser has been requested to appraise a poultry farm. This type of farm...

Accounting