Yuanne Sipp and Letitia Grimes share partnership income on a 3:2 basis. They have capital balances of $552,000 and $279,000, respectively, when Tammy Tuck is admitted to the partnership.
Prepare the journal entry to record the admission of Tammy Tuck under each of the following assumptions:
Tuck invests $320,000 for a 25% ownership interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Tuck invests $220,000 for a 25% ownership interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and Explanation Debit CreditTuck, CapitalTuck, DrawingsSipp, CapitalGrimes, DrawingsSipp, DrawingsGrimes, CapitalCashSupplies
Grimes, CapitalCashSipp, DrawingsGrimes, DrawingsSipp, CapitalTuck, DrawingsSuppliesTuck, Capital
Sipp, CapitalGrimes, DrawingsTuck, DrawingsSuppliesSipp, DrawingsCashGrimes, CapitalTuck, Capital
Tuck, DrawingsSipp, CapitalSipp, DrawingsTuck, CapitalCashSuppliesGrimes, DrawingsGrimes, Capital