Using a worksheet, calculate the partners' balances once Paul is admitted and make journal entries to update the books
Ruth and Bob decide to form a partnership along with Tribbs Holding Company to purchase an office building. They give you the following facts:
? Tribbs invested $45,000 and is a limited partner. Tribbs receives interest at 6% on its investment.
? Ruth provides $35,000 in computer equipment as a limited partner.
? Bob provides $15,000 as the general partner and receives a salary of $15,000 per year.
? Profits during the year are $60,000 after all expenses.
? At the end of the year, Ruth retires from the partnership. The partnership pays her $50,000. Profit allocation is 45% for Tribbs, 30% for Ruth, and 25% for Bob.
? After Ruth retires, the partnership admits Paul who invests $50,000 and will receive 30% of the partnership's gains and losses.
? Using a worksheet, calculate the partners' balances once Paul is admitted and make the journal entries to update the books.© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/accounting/using-a-worksheet-calculate-the-partners-balances-once-paul-is-admitted-and-make-journal-entries-to-update-the-books-3dmi