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Question - The capital accounts of the Pop, Crackle, and Snap partnership at December 31, 2018, together with profit and loss sharing ratios are as follows:
Pop (25%) 70,000
Crackle (25%) 90,000
Snap (50%) 150,000
Total 310,000
Crispie invests $70,000 cash into the partnership for a 30% interest in the capital and profits of the partnership. The partnership assets are not revalued at the time of Crispie's investment.
Prepare the journal entries to admit Crispie into the partnership and calculate the capital balances immediately after Crispie's admission into the partnership. (There is no goodwill and Crispie will receive the bonus.)
Drysdale Dairy produces a variety of dairy products. In Department 12, cream (transferred in from Department 6) and other materials
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