The Struter Partnership has total partners' equity of $380,000, which is made up of Main,...
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The Struter Partnership has total partners' equity of $380,000, which is made up of Main, Capital, $266,000, and Frist, Capital, $114,000. The partners share net income and loss in a ratio of 74% to Main and 26% to Frist. On November 1, Adison is admitted to the partnership and given a 20% interest in equity and a 20% share in any income and loss.
Prepare journal entries to record the admission of Adison for a 20% interest in the equity and a 20% share in any income and loss under independent assumption.
(1) Record the admission of Adison with an investment of $95,000 for a 20% interest in the equity and a 20% share in any income and loss.
(2) Record the admission of Adison with an investment of $130,000 for a 20% interest in the equity and a 20% share in any income and loss.
(3) Record the admission of Adison with an investment of $65,000 for a 20% interest in the equity and a 20% share in any income and loss.
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