Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

In the AMR partnership, Aseel's capital is $40,000, Malak's is $50,000, and Rula's is 30,000. They share income in the 60:20:20ratios, respectively. Rula is retiring

In the AMR partnership, Aseel's capital is $40,000, Malak's is $50,000, and Rula's is 30,000. They share income in the 60:20:20ratios, respectively. Rula is retiring from the partnership and she is paid $35,000, and all implied goodwill is recorded. The journal entry to recognize all implied goodwill before Rula's retirement will include: O a. Debit Goodwill, $5,000; Credit Rula, Capital $5,000. O b. Debit Goodwill, $25,000; Credit Aseel, Capital, $15,000; Credit Malak, Capital, $5,000; Credit Rula, Capital $5,000. O c. Debit Goodwill, $5,000; Credit Aseel, Capital, $3,000: Credit Malak, Capital, $1,000; Credit Rula, Capital$1,000. O d. Debit Goodwill, $30,000; Credit Aseel, Capital, $18,000; Credit Malak, Capital, $6,000; Credit Rula, Capital$6,000.
image text in transcribed
In the AMR partnership, Aseel's capital is $40,000. Malak's is $50,000, and Rula's is 30,000 . They share income in the 60:20:20ratios, respectively. Rula is retiring from the parthership and she is paid $35,000, and all implied goodwill is recorded. The joumal entry to recognize all implied goodwill before Rula's retirement will include: a. Debit Goodwill, $5,000; Credit Rula, Capital $5,000. b. Debit Goodwill, \$25,000; Credit Aseel Capital, \$15,000; Credit Malak, Capital, \$5,000; Credit Rula, Capital $5,000. c. Debit Goodwill, $5,000; Credit Aseel, Capital, $3,000; Credit Malak, Capital, $1,000; Credit Rula, Capital\$1,000. d. Debit Goodwill, \$30.000; Credit Aseel, Capital, \$18,000: Credit Malak, Capital, \$6,000; Credit Rula, Capital $6,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions