Calculate the ending capital balances

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Reference no: EM13513619

Jeff Bowman and Kristi Emery, who have ending capital balances of $100,000 and $60,000, respectively, agree to admit two new partners to their business on August 18, 20--. Dan Bridges will buy one-fifth of Bowman's capital interest for $30,000 and one-fourth of Emery's capital interest for $20,000.

Payments will be made directly to the partners. Anna Terrell will invest $50,000 in the business, for which she will receive a $50,000 capital interest.

1. Prepare general journal entries showing the transactions admitting Bridges and Terrell to the partnership.

2. Calculate the ending capital balances of all four partners after the transactions.

Reference no: EM13513619

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