(SOLVED) Edgar and Hawk have partner capital balances of 257 000 and


Question Description:

$19

Edgar and Hawk have partner capital balances of $257,000 and $223,000, respectively. Edgar receives 70% of profits and losses, and Hawk receives 30%. Assume Price contributes$120,000 to acquire a 25% interest in the new partnership of Edgar, Hawk, and Price.
Requirements
1. Calculate Price’s capital in the new partnership.
2. Journalize the partnership’s receipt of cash from Price.

Answer

$19