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J. Lynn, M. Oller, and F. Tate share income on a 5 : 3 : 2 basis. They have capital balances of $30,000, $26,000, and $18,000, respectively, when Doc Duran is admitted to the partnership.
Instructions
Prepare the journal entry to record the admission of Doc Duran under each of the following assumptions.
(a) Purchase of 50% of Lynn's equity for $19,000.
(b) Purchase of 50% of Oller's equity for $12,000.
(c) Purchase of 331⁄3% of Tate's equity for $9,000.
General Fund revenues and expenditures for the current year are expected to be as shown here. Determine the projected year end fund balance for this fund.
Which of the following statements regarding fixed costs is incorrect?
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