Chapter 5
Partnerships
228
b) Prepare the journal entry to record the admission of Mia.
Date
Account Title and Explanation
Debit
Credit
c) Calculate the ending capital balance of each partner after the addition of Mia on January 1,
2017.
Bob Mike
Amy
Mia
AP-8A (
7
)
Sylvia, Sonia and Sana are all partners who operate a beauty salon called S3 Beauty. On
January 1, 2016, Sylvia, Sonia and Sana had a capital balance of $320,000, $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 $300,000 cash in
the business.
Required
a) Calculate the new capital balance for each partner after Sharon has been added to the
partnership.
Sylvia Sonia Sana Sharon Total
