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In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of
In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are Mary Gene Pat $283,200 141,600 47,200 Required: a. If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest? b. Prepare journal entry for the admission of Elan if she invests $80,500 for a 20 percent interest and goodwill is recorded. c. Prepare journal entry for the admission of Elan if she invests $201,000 for a 20 percent interest. Total capital will be $673,000; the partners use the bonus method
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