Question
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%)
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:
| Tiger (40%) | $ | 170,000 |
| Phil (40%) | 140,000 | |
| Ernie (20%) | 155,000 | |
Each of the following questions should be viewed independently.
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If Sergio invests $210,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $175,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $204,000 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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Financial Analysis And Decision Making
Authors: David E. Vance
1st Edition
0071406654, 9780071406659
