Olive 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, 2024, they have capital balances of $100,000 and $60,000, 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.
(a)
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. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts.)
2.
Xanthos invests $50,000 cash for a 30% ownership interest. This is an investment of assets.
Xanthos invests $90,000 cash for a 30% ownership interest. This is an investment of assets.