on december 31 2014 jim austin and mike mundy agree to combine their proprietorships 3387205

On December 31, 2014, Jim Austin and Mike Mundy agree to combine their proprietorships as a partnership. Their balance sheets on December 31 are as follows: Required 1. Prepare the partnership balance sheet on December 31, 2014. 2. Assume John Allen wants to join the partnership by paying $212,000 for a ΒΌ interest. The partnership equity before John joins is $960,000, and Jim Austin and Mike Mundy shared profits 60 percent for Austin and 40 percent for Mundy. Prepare the journal entry to record John s admission to the partnership on January 1, 2015. 3. What percent of the profits will John Allen receive after becoming a partner?

 

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