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%) | $ | 95,000 |
| Phil (20%) | 65,000 | |
| Ernie (40%) | 80,000 | |
Each of the following questions should be viewed independently.
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If Sergio invests $120,000 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 $90,000 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 $108,000 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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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
13th edition
134472144, 978-0134472140
