Lie, Cheat and Steele are a successful Law Practice in Washington D.C. On January 1st 2023...

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Lie, Cheat and Steele are a successful Law Practice in Washington D.C. On January 1st 2023 they have the following balance sheet: Cash 50000 wages payable 30000 accounts rec 200,000 equipment 100,000 Lie Capital 200,000 a/d equipment 20000 Cheat Capital 200,000 land 500,000 Steele Capital 400,000 total assets 830,000 The partners share profits and losses equally On January 2nd, Immacrook offered $800,000 to become a 1/4 partner in the firm (partners will continue to share profits/losses equally) and the partners have agreed. The $800,000 will go into the partnership and not to individual partners. REQUIRED; A) Make the journal entry to bring Immacrook into the partnership if they use the bonus method B) Make the journal entry to bring Immacrook into the partnership if they use the goodwill method Lie, Cheat and Steele are a successful Law Practice in Washington D.C. On January 1st 2023 they have the following balance sheet: Cash 50000 wages payable 30000 accounts rec 200,000 equipment 100,000 Lie Capital 200,000 a/d equipment 20000 Cheat Capital 200,000 land 500,000 Steele Capital 400,000 total assets 830,000 The partners share profits and losses equally On January 2nd, Immacrook offered $800,000 to become a 1/4 partner in the firm (partners will continue to share profits/losses equally) and the partners have agreed. The $800,000 will go into the partnership and not to individual partners. REQUIRED; A) Make the journal entry to bring Immacrook into the partnership if they use the bonus method B) Make the journal entry to bring Immacrook into the partnership if they use the goodwill method

Answer rating: 100% (QA)

A Journal Entry under Bonus Method Date Jan 2 2023 Account Title Dr Cr Cash 800000 Immacrook Capital 800000 To record payment from Immacrook becoming ... View the full answer