Samuel and Darcy are partners. The partnership capital for Samuel is $50,000 and that of Darcy...

Samuel and Darcy are partners. The partnership capital for Samuel is $50,000 and that of Darcy is $60,000. Josh is admitted as a new partner by investing $50,000 cash. Josh is given a 20% interest in return for his investment. The amount of the bonus to the old partners is ______________ ? Record journal entries to record the following separate transactions related to issuing stock: On February 20, a company issues 10,000 shares of $4 par value common stock in exchange for services rendered to help with incorporation. The services are valued at $50,000. On March 1, a company issues 42,500 shares of $4 par value common stock for $297,500. On September 10, a company issues 20,000 shares of $20 par value preferred stock for $28 per share. Date Account Debit Credit For each of the following separate (unrelated) dividend transactions, prepare the journal entry:

Expert Solution

Q1.
New Part ner amount brought in			50000
Share in profit			20%
Total capital as taking new partner base			250000
Less: Actual capital
Samuel		50000
Darcy		60000
Josh		50000	160000
Bonus to Old partners			90000


Q2.
Journal Entries:
Date	Accounts title and explanations			Debit $	Credit $
20-Feb	Organisation expenses			50000
	Common Stock capital (10000*4)				40000
	Additional paid in capital- Common Stock				10000

1-Mar	Cash account			297500
	Common Stock capital (42500*4)				170000
	Additional paid in capital- Common Stock				127500

10-Sep	Cash account (20000*28)			560000
	Preferred Stock capital (20000*20)				400000
	Additional paid in capital (20000*8)				160000

ekkarill92 answered 6 months ago

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