On April 1, the Bruce & Duval partnership agreed to admit Singh to the partnership. Singh will receive a share of the business for a cash investment of $200,000. Information regarding the partnership records to the admission of Singh is located in the table. Bruce $125,000 3 Duval $75,000 2 Capital balance Profit sharing ratio Prepare the journal entry to admit Singh into the partnership. Show calculations.

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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On April 1, the Bruce & Duval partnership agreed to admit Singh to the partnership. Singh will receive a 40%
share of the business for a cash investment of $200,000. Information regarding the partnership records prior
to the admission of Singh is located in the table.
Bruce
$125,000
3
Duval
$75,000
2
Capital balance
Profit sharing ratio
Prepare the journal entry to admit Singh into the partnership. Show calculations.
Transcribed Image Text:On April 1, the Bruce & Duval partnership agreed to admit Singh to the partnership. Singh will receive a 40% share of the business for a cash investment of $200,000. Information regarding the partnership records prior to the admission of Singh is located in the table. Bruce $125,000 3 Duval $75,000 2 Capital balance Profit sharing ratio Prepare the journal entry to admit Singh into the partnership. Show calculations.
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