Question
The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (40% of profits and losses) $ 125,000 Phil
The Distance Plus partnership has the following capital balances at the beginning of the current year:
| Tiger (40% of profits and losses) | $ | 125,000 |
| Phil (20%) | 95,000 | |
| Ernie (40%) | 110,000 | |
Each of the following questions should be viewed independently.
A.If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.
B. If Sergio invests $140,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.
C. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
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The Internet Market Research Audit
Authors: Cambridge
1st Edition
1902433742, 978-1902433745
