Question
please help with this question: Problem 14-18 (Algo) (LO 14-9) The Distance Plus partnership has the following capital balances at the beginning of the current
please help with this question:
Problem 14-18 (Algo) (LO 14-9)
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:
Tiger (40%) | $ | 90,000 |
Phil (30%) | 60,000 | |
Ernie (30%) | 75,000 | |
Each of the following questions should be viewed independently.
If Sergio invests $70,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $50,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $60,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
Please show all three in journal form.
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