Horngren’s Accounting, Volume 2, 11th Canadian Edition by Tracie Miller-Nobles Solution manual

Fluery’s investment in the partnership                            100,000
Partnership capital after Fluery is admitted                  $400,000
                                                                                                     
Fluery’s capital in the partnership ($400,000 ´ 1/4)     $100,000
 
 
 

                                                                            (continued) P12-4B
c.
General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Mar.31Cash 80,000 
  Jim Zook, Capital 6,000 
  Richard Land, Capital 3,000 
  Jennifer Lowe 6,000 
       Helen Fluery, Capital  95,000
  To admit Helen Fluery as a partner with a one-fourth interest in the business.   
 
Partnership capital before Fluery is admitted ($50,000 + $100,000 + $150,000)                                                   $300,000
Fluery’s investment in the partnership                            80,000
Partnership capital after Fluery is admitted                  $380,000
                                                                                                     
Fluery’s capital in the partnership ($380,000 ´ 1/4)      $ 95,000
 
Reduction of other partners’ capital balance:
$95,000 – $80,000 = $15,000
Zook: $15,000 × 0.40 = $6,000
Land: $15,000 × 0.20 = $3,000
Lowe: $15,000 × 0.40 = $6,000

a.                                                                      (20–25 min.) P12-5B
General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Dec.31Sam Seamus, Capital 210,000 
       Rea Pearlman, Capital  210,000
  To record transfer of Seamus’s equity in the partnership to Pearlman.   
 
b.
General Journal
Date
2020Account Titles and ExplanationsPost. Ref.DebitCredit
Dec.31Sam Seamus, Capital 210,000 
       Cash  163,000
       Note Payable to Seamus  47,000
  To record withdrawal of Seamus from the partnership.