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Please solve............................................................................ Problem 6: Kirk and Spock are equal partners in a dress shop. At the end of 2015 their partnership had the following balance
Please solve............................................................................
Problem 6: Kirk and Spock are equal partners in a dress shop. At the end of 2015 their partnership had the following balance sheet: Cash $50,000 A/R $50,000 Inventory $500,000 Equipment (net) $500,000 A/P 100,000 Kirk capital $100,000 Spock capital $900,000 At the beginning of 2016, Kirk and Spock agree to accept Klingon as a new partner so that each of them will be 1/3 partners. Klingon agrees to pay $800,000 to join the partnership. Required: 1) Make the journal entry the partner makes when Klingon makes the $800,000 contribution to the partnership in exchange for a 1/3 ownership interest if the partnership uses a) The bonus method b) The goodwill method 2) what is the ending capital accounts of Kirk, Spock and Klingon under each of these methodsStep by Step Solution
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