I’m working on a Accounting question and need guidance to help me study.
There are 2 Discussion Questions
- Explain the process of admitting a new partner, what the initial journal entry would be to record the transaction in the general for the partnership. Given the new partner is bringing in $145,000 cash to the partnership and equipment valued at $73,0000. Justify your response by showing the ending capital account balance for the new partner after admittance.
- Assume that John, James, and Jane are considering creating a legal business entity to develop and market their idea for a web application. Recommend the most appropriate type of business activity (i.e., a general partnership, a limited liability partnership, or a limited liability company) for them to form. Provide a rationale for your response and examples.