Solved

Avery and Bert Are Partners Who Share Profits and Losses

Question 36

Short Answer

Avery and Bert are partners who share profits and losses in a ratio of 2:1 and have capital balances of $75,000 and $150,000, respectively. The partners agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35 percent interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is: Avery and Bert are partners who share profits and losses in a ratio of 2:1 and have capital balances of $75,000 and $150,000, respectively. The partners agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35 percent interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is:

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q8: The use of salaries in the allocation

Q31: Doris invests $10,000 for a one-third interest

Q32: Bankruptcy of a partner will dissolve the

Q34: A partner's inability to meet his or

Q37: Each partner is personally liable for all

Q38: Tim and Vito are about to liquidate

Q39: Aaron, Ben, and Carl are liquidating their

Q40: A partnership agreement most likely will stipulate

Q40: It is possible for a partner's Capital

Q41: Jimmy, Karol, and Lui are partners in