Assume that Bob and Doug each have a Capital Account of $ million Mr Lee wants to join the partnership.

Bob and Dougs law firm partnership is super profitable, and for Mr Lee to join their law firm, he is required to

contribute $ million in cash to the partnership in return for a interest.

Bob and Doug share profits and respectively, prior to the admission of Mr Lee to the law firm and will

retain their relative proportion of profit allocations after giving Mr Lee a profit allocation interest.

Use the Bonus Method to record the journal entry on the books of the new partnership to reflect the admission

of Mr Lee to the partnership. points

Given the same facts above in Question assume that Bob and Doug believe that Mr Lee has advanced legal

technology that Bob and Doug believe will provide significant value to the law firm. Bob and Doug want to

record the value of this intangible asset on the postadmission partnership balance sheet.

Use the Goodwill Method to record the journal entry on the books of the partnership to reflect the admission of

Mr Lee to the partnership.

Answer rating: 100% (QA)

To record the admission of Mr Lee to the partnership using the Bonus Method 1 Mr Lees cash contribut... View the full answer