Leto and Duncan allow Gunner to purchase a 25% interest in their partnership for $30,000 cash. Gunner has exceptional talents that will enhance the partnership. Leto's and Duncan's capital account balances are $55,000 each. The partners have agreed to share income or loss equally. Prepare the general journal entry to record the admission of Lepley to the partnership.
What will be an ideal response?
Existing partnership capital = $110,000; $110,000 + Gunner investment of $30,000 = $140,000; $140,000 * 25% = $35,000. Gunner receives a bonus of $5,000 split evenly between Leto and Duncan.
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