Question
REQUIRED: A) MAKE THE PARTNERSHIP JOURNAL ENTRY IF THE PARTNERSHIP USES THE BONUS METHOD B) MAKE THE PARTNERSHIP JOURNAL ENTRY IF THE PARTNERSHIP USES THE
REQUIRED:
A) MAKE THE PARTNERSHIP JOURNAL ENTRY IF THE PARTNERSHIP USES THE BONUS METHOD
B) MAKE THE PARTNERSHIP JOURNAL ENTRY IF THE PARTNERSHIP USES THE GOODWILL METHOD.
Problem & Detail:
Pelosi, Trump and Schiff are partners in the PST partnership. On January 1, 2020 the capital accounts for the partners are as follows:
| Pelosi | $100,000 |
| Schiff | $200,000 |
| Trump | $300,000 |
Trump is a 50% partner; Schiff is a 30% partner and Pelosi is a 20% partner.
On January 2nd Biden wants to join the partnership as a 25% partner. Biden will be contributing $400,000 into the partnership.
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International Corporate Reporting Global And Diverse
Authors: Pauline Weetman, Ioannis Tsalavoutas, Paul Gordon
5th Edition
1138364991, 9781138364998
