Sylvia, Sonia and Sana are all partners who operate a beauty salon called S3 Beauty. On August 12, 2020, Sylvia, Sonia and Sana had a capital balance of $342,000, $215,000 and $360,000 respectively. Due to the successful growth of the business, the original partners have agreed to add an additional partner, Sharon. Sharon will be investing $283,000 cash in the business. Do not enter dollar signs or commas in the input boxes. a) Calculate the new capital balance for each partner after Sharon has been added to the partnership. Sylvia Sonia Sana Sharon Total Capital balance before admission Admission of new partner Capital balance after admission b) Prepare the journal entry to record the admission of Sharon. Date Account Title and Explanation Debit Credit Aug 12 To record the admission of new partner

Sylvia, Sonia and Sana are all partners who operate a beauty salon called S3 Beauty. On August 12, 2020, Sylvia, Sonia and Sana had a capital balance of $342,000, $215,000 and $360,000 respectively. Due to the successful growth of the business, the original partners have agreed to add an additional partner, Sharon. Sharon will be investing $283,000 cash in the business. Do not enter dollar signs or commas in the input boxes. a) Calculate the new capital balance for each partner after Sharon has been added to the partnership. Sylvia Sonia Sana Sharon Total Capital balance before admission Admission of new partner Capital balance after admission b) Prepare the journal entry to record the admission of Sharon. Date Account Title and Explanation Debit Credit Aug 12 To record the admission of new partner

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter7: Losses—deductions And Limitations

Section: Chapter Questions

Problem 81TA

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