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In: Accounting

The XYZ Partnership has the following balance sheet at January 1, 2018, prior to the admission...

The XYZ Partnership has the following balance sheet at January 1, 2018, prior to the admission of new partner, E.

Assets

Amount $

Liabilities + Capital

Amount $

Cash & CA

49,000

Liabilities

592,000

Land

534,000

A capital

55,000

PPE

394,000

B capital

32,000

C capital

107,000

D capital

191,000

977,000

977,000

E contributes $25,000 into the partnership for interest which is 30% of PPE as agreed. The four original partners share profits and losses equally. Use the bonus method for the calculations.

Requirement: (round off decimal places)

  1. Pass journal entry to record the admission of E.
  2. Draw the balance sheet dated December 2018.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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