Question
The Distance Plus partnership has the following capital balances at the beginning of the current year: Tiger (50% of profits and losses) $ 70,000 Phil
The Distance Plus partnership has the following capital balances at the beginning of the current year:
| Tiger (50% of profits and losses) | $ | 70,000 |
| Phil (40%) | 40,000 | |
| Ernie (10%) | 55,000 | |
Each of the following questions should be viewed independently.
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If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $50,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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If Sergio invests $60,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
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Quality Audits For Improved Performance
Authors: Dennis R. Arter
3rd Edition
0873895703, 978-0873895705
