Betsey and Brenda are partners. After the books are closed, their capital balances are $240,000 and...

Betsey and Brenda are partners. After the books are closed, their capital balances are $240,000 and $260,000, respectively. They share profits by a 2:6 ratio. They have decided to admit Angela to the partnership.

Record Angelaʹs transaction if she purchases a 20% interest from the partnership for $90,000?

Record Angelaʹs transaction if she purchases a 25% interest from the partnership for $200,000?

Record Angelaʹs transaction if she purchases a 15% interest from the partnership for $100,000?

Record Angelaʹs transaction if she purchases one-third of Betseyʹs interest from Betsey for $100,000?

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Expert Solution

All answers are attached below

Recorded Journal Entries through Goodwill Method. Since, no method was mentioned. I have assumed this one.

ekkarill92 answered 1 year ago

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