Question to be answered :

1. using the bonus method, Tom capital is initially credited for how much
2. Using the bonus method, spike getting up a bonus of how much with the initial contribution
3. After blue entry, spike capital account has what balance
4. After bule entry, Tom capital account has what balance
5. on entry, blue capital is credited for how much
6. using the bonus method, jerry capital is initially credited for how much
7. using the bonus method, spike capital is initially credited for how much
8. Using the bonus method, how much is the bonus with the initial contribution
9. After blue entry, Jerry capital account has what balance
10. Using the bonus method, Tom is getting a bonus of how much with the initial contributions.

Tom, Jerry and Spike agree to form a Partnership. Tom invests cash of $200,000. Jerry invests equipment of $300,000. Spike invests Land of $300,000 and Building of $100,000 - a) They agree to share profits 1:1:2 respectively and will use the Bonus method and align their capital accordingly. b) Subsequently Blue wants to join and will pay the partners directly $500,000 for a 25% interest in the Partnership The bonus method will be used for Blue entry. Required- Perform the below (a and b) then answer the questions that follow a) Prepare the entry to record the initial contributions of each partner and to align their capital using the Bonus method in the profit sharing ratio of 1:1:2 b) Prepare the entry to record Blue's ontry into the Partnership and his 25% interest Note that Blue is paying the partners directly