Assume that the Ortiz- Gonzalez partnership, owned by Isaac Ortiz and Mariela Gonzalez, has total...
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Accounting
Assume that the Ortiz- Gonzalez partnership, owned by Isaac Ortiz and Mariela Gonzalez, has total capital of $150,000. Edayra Rivera acquires a 35% ownership (capital) interest in the partnership by making a cash investment of $30,000. The procedure of determining Edayra's capital credit and the bonus to the old partners is a follow:
a. Determine the total capital of the new partnership.
Total capital of existing partnership
Investment by new partner, Edayra
Total capital of new partnership
b. Determine the new partner's credit.
Total capital of existing partnership
New partner's ownership interest
New partner's capital credit
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