Amy Cardoza, Jeff Williams, and Claire Mangoni are partners in an existing music business. Each partner's equity is \($32,000,\) for a total equity of \($96,000.\) The partners agree to admit Russ Hodges as a partner with a one-fourth interest for a \($24,000\) cash investment. The firm's bookkeeper made the following entry in the partnership's general journal, based on information recorded on R213 and M89.

Instructions:

1. Do you agree with the bookkeeper's entry? Explain your answer. 

2. If you disagree, what journal entries would you make?

Transcribed Image Text:

GENERAL JOURNAL DATE 1 Oct. 1 Cash 2 3 Goodwill ACCOUNT TITLE Russ Hodges, Capital DOC. POST. NO. REF R213 PAGE 12 DEBIT 2400000 CREDIT 800000 320000 3