Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Lie, Cheat and Steele are a successful Law Practice in Washington D.C. On January 1st 2023 they have the following balance sheet: Cash 50000
Lie, Cheat and Steele are a successful Law Practice in Washington D.C. On January 1st 2023 they have the following balance sheet: Cash 50000 wages payable 30000 accounts rec 200,000 equipment 100,000 Lie Capital 200,000 a/d equipment 20000 Cheat Capital 200,000 land 500,000 Steele Capital 400,000 total assets 830,000 The partners share profits and losses equally On January 2nd, Immacrook offered $800,000 to become a 1/4 partner in the firm (partners will continue to share profits/losses equally) and the partners have agreed. The $800,000 will go into the partnership and not to individual partners. REQUIRED; A) Make the journal entry to bring Immacrook into the partnership if they use the bonus method B) Make the journal entry to bring Immacrook into the partnership if they use the goodwill method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
A Journal Entry under Bonus Method Date Jan 2 2023 Account Title Dr Cr Cash 800000 Immacrook Capital 800000 To record payment from Immacrook becoming ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started