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 (50%)
The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages:
| Tiger (50%) | $ | 105,000 |
| Phil (20%) | 75,000 | |
| Ernie (30%) | 90,000 | |
Each of the following questions should be viewed independently.
If Sergio invests $100,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $60,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $70,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
Complete Journal Entries
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The Book Marketing Audit
Authors: Kilby Blades
1st Edition
0985798335, 978-0985798338
