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On August 1, Joan Taylor and Tom Maid are partners in The Taylor Maid Company. They have capital balances of $30 000 and $20 000 respectively, and have an income ratio of 60% and 40%.
Problem 1: Record journal entries for each of the independent situations below about the admission of a new partner:
a) Jim Zucher agrees to purchase half of Taylor's equity for $18 000.
b) Barry Thompson agrees to purchase all of Maid's equity for $17 000.
c) Gary Malley invests $5 000 cash and equipment with a fair market value of $9 000 in the
The booster club sells programs for $1 each. The costs to make the programs are $60 for layout plus .20 for printing each program. If they print 400 programs, how many programs must the club sell to make at least $200 profit?
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