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The Books Partnership has a total partners’ equity of $620,000 which is made up of Kit...

The Books Partnership has a total partners’ equity of $620,000 which is made up of Kit Kat capital $434,000 and Rick Rat capital $186,000. The partners share net income and loss in a ratio of 83% to Kat and 17% to Rat. On November 1, Jonny Cakes is admitted to the partnership and given a 20% share in any income and loss.

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Prepare journal entries to record the admission of Jonny for a 20% interest in the equity and a 20% share in any income and loss under the following independent assumptions

•Record the admission of Jonny with an investment of $155,000 for a 20% interest in the equity and a 20% share in any income and loss

•Record the admission of Jonny with an investment of $190,000 for a 20% interest in the equity and a 20% share in any income and loss

•Record the admission of Jonny with an investment of $125,000 for a 20% interest in the equity and a 20% share in any income and loss

Whats the new capital balance after admitting John cakes?

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