Answer Happy

Sandhill Oil Imports is a partnership owned by Magda Stavros and Giannis Metaxas. The partners share profit on a 3:2 basis, respectively. On January 1, 2021, they have capital balances of $91,000 and $69,000, respectively. On that day, Magda and Giannis agree to admit lona Xanthos to the partnership in exchange for an investment of cash into the partnership. Prepare the journal entry to record the admission of Xanthos on January 1 under each of the following independent assumptions: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not round any intermediate calculations Round answers to decimal places, eg. 5,250.) 1. Xanthos invests $62,000 cash for a 33% ownership interest. This is an investment of assets, Xanthos invests $98,000 cash for a 33/% ownership interest. This is an investment of assets. 2 Date Account Titles and Explanation Debit Credit (1) Jan 1 Cash 62000 M. Stavros, Capital V

Date Account Titles and Explanation Debit Credit (1) Jan 1 Cash 62000 M. Stavros. Capital G. Metaxas, Capital 1. Xanthos, Capital v (To record purchase of an interest.) (2) Jan 1 Cash 98000 M. Stavros, Capital G. Metaxas, Capital 1. Xanthos, Capital (To record purchase of an interest.)

Alternative 1 M. Stavros Capital G. Metaxas Capital 1. Xanthos Capital Total Capital Beginning balance $ A $ $ Ending balance $ $ TA $ A Alternative 2 M. Stavros Capital G. Metaxas Capital 1. Xanthos Capital Total Capital Beginning balance $ $ $ $ Ending balance $ $ $ $