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1. Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $150,000, $90,000, and $60,000, respectively.
(a) Assume Sanford joins the partnership by investing $140,000 for a 25% interest with bonuses to the existing partners. Prepare the journal entry to record his investment.
(b) Assume instead that Daggett leaves the partnership. Daggett is paid $170,000 with a bonus to the retiring partner. Prepare the journal entry to record Daggett’s withdrawal.
2. The following information is available for Mint Corporation
Common Stock ($10 par) $1,500,000
Paid-in Capital in Excess of Par – Preferred 200,000
Paid-in Capital in Excess of Stated Value – Common 750,000
Preferred Stock 450,000
Retained Earnings 800,000
Treasury Stock – Common 50,000
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Based on the preceding information, calculate each of the following:
(a) Total paid-in capital.
(b) Total stockholders’ equity.
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