Question
ACCT 402 The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:
ACCT 402
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:
| Tiger (50%) | $ | 100,000 |
| Phil (40%) | 70,000 | |
| Ernie (10%) | 85,000 | |
Each of the following questions should be viewed independently.
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If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $80,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $90,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
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Strategic Market Management
Authors: David A. Aaker
4th Edition
0471309567, 9780471309567
