Lat03
Three partners, Pat Mike, and Hay, have capital balances and profit sharing ratios at
December 31, 20X3 as follows:
Pat
$144,000
profit ratios 2/5
Mike
216,000
profit ratios ½
hay
90,000
profit ratios 1/10
on January 1, 20X4, Con invests $85,080 in the business for a one-sixth interest in
capital and income
Required:
1. Prepare journal entries giving two alternative solutions for recording Con’s
admission to the partnership
2. Prepare journal entries giving two alternative solutions for recording Con’s
admission to the partnership if she purchased a one-sixth interest from each of the
partners, rather than paying the $85,080 into the business.