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Paul and Marie agreed to form a partnership with total agreed capital contribution of $500,000 cash. Partner Marie would be an industrial partner to received
Paul and Marie agreed to form a partnership with total agreed capital contribution of $500,000 cash. Partner Marie would be an industrial partner to received 30% profit sharing.
Which of the following is correct?
A. The total capital of Paul is $350,000.
B. The total capital of Marie is zero.
C. The journal entry to record the contribution of Paul includes credit of capital $350,000.
D. The journal entry to record the contribution of Marie includes debit of cash $150,000.
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
4th edition
1405888202, 978-0273711490, 273711490, 978-1405888202
