Question
The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (50% of profits and losses) $ 130,000 Phil
The Distance Plus partnership has the following capital balances at the beginning of the current year:
Tiger (50% of profits and losses) $ 130,000
Phil (40%) 100,000
Ernie (10%) 115,000
Each of the following questions should be viewed independently.
1. If Sergio invests $150,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
2. If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
3. If Sergio invests $125,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
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Performance Audit Department Of Highways Preconstruction And Construction Activities
Authors: Montana. Legislature. Office Of The Legi
1st Edition
1175365823, 978-1175365828
