Answer to Question #103734 in Accounting for ibrar

Question

Lang, Morris and Chen are partners with capital balances as follows: Lang, $306,000; Morris, $102,000; and Chen, $204,000. The partners share profits and losses in a 1:2:1 ratio. LeBlanc is admitted to the partnership with a 20% equity.
Required:Prepare journal entries to record the entry of LeBlanc under each of the following unrelated assumptions (Show all calculations):
a. LeBlanc invests $153,000 cash. (2 marks)
b. LeBlanc invests $108,000 cash. (4 marks)
c. LeBlanc invests $246,000 (4 marks)
d. Partnership profit for the year following LeBlanc’s admission to the partnership is $300,000. Prepare the journal entry to close the Income Summary account to the partners’ capital accounts. (4 marks)

Answer 1

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