Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please only look into 15-4. I only need Cases 6 and 7 resolved. I already did 1-5. Again, only do 15-4 and only do cases
Please only look into 15-4. I only need Cases 6 and 7 resolved. I already did 1-5. Again, only do 15-4 and only do cases 6 and 7. Reiterating, Problem 15-4, just numbers 6 and 7. Please also make them look like I did in case 5 example provided. DO NOT FORGET TO DETERMINE IF GOODWILL OR BONUS METHOD. Please do ASAP thank you.
pLEASE ANSWER THE QUESTION 6 AND 7 IN A WAY THAT MAKES IT MATCH WITH THE CASE 5 PROVIDED ABOVE. PLEASE RESOLVE ASAP
Partner Admission L0 8 Brown and Coss have been operating a tax accounting service as a partnership for five years. Their current capital balances are $92,000 and $88,000, respectively, and they share profits in a 60:40 ratio. Because of the growth in their tax business, they decide that they need a new partner. Moore is admitted to the partnership, after which the partners agree to share profits 40% to Brown, 35% to Coss, and 25% to Moore. Required: Prepare the necessary journal entries to admit Moore in each of the following independent conditions. If the information is such that both the bonus and goodwill methods are appropriate for internal pruposes, record the admission using both methods. 4. Moore invests $40,000 cash for a one-fourth capital interest. The partners agree that assets and the firm as a whole should not be revalued. 5. Moore invests $35,000 cash for a one-fifth capital interest. The partners agree that total capital after the admission of Moore should be $225,000. 6. Moore invests land in the partnership as a site for a new office building. The land, which originally cost Moore $90,000, now has a current market value of $150,000. Moore is admitted with a one-third capital interest. 7. Moore is admitted to the partnership by purchasing a 30% capital interest from each partner. A payment of $35,000 is made outside the partnership and is split between Brown and Coss. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ Case 5} \\ \hline ValueofInterestAcquiredbyMoore & 43,000 & Work: (180,000+35,000)0.20 \\ \hline Bookvalueofinterestgreaterthanassetinvested & 8,000 & Work: (43,00035,000) \\ \hline \multicolumn{3}{|l|}{ GOODWILL METHOD } \\ \hline Total Capital & 225,000 & \\ \hline Net Assets + Moore contribution & 215,000 & Work: (180,000+35,000) \\ \hline Goodwill & 10,000 & Work: (225,000215,000) \\ \hline Journal & Debit & Credit \\ \hline Cash & 35,000 & \\ \hline Goodwill & 10,000 & \\ \hline Moore Capital & & 45,000 \\ \hline \end{tabular}Step by Step Solution
There are 3 Steps involved in it
Step: 1
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