The capital balances for the partnership of Li- ang, Tan, and Wu are as follows: $...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The capital balances for the partnership of Li- ang, Tan, and Wu are as follows: $ 50,000 Capital-Liang. Capital-Tan. Capital-Wu 250,000 140,000 The partnership profit-sharing ratio is 1:6:3. A new partner, Gao, enters the partnership by investing cash directly in the partnership. Required Prepare the journal entry to record Gao's admission to the partnership, and compute the new capital bal- ances, in each of the following cases. Gao invests $60,000 for a 12 percent interest in the partnership. b. Gao invests S50,000 for a 12 percent interest in the partnership. The bonus method is used. Gao invests $72,000 for a 12 percent interest in the partnership. The goodwill method is used, and any revaluation is attributed to goodwill. a. c. The capital balances for the partnership of Li- ang, Tan, and Wu are as follows: $ 50,000 Capital-Liang. Capital-Tan. Capital-Wu 250,000 140,000 The partnership profit-sharing ratio is 1:6:3. A new partner, Gao, enters the partnership by investing cash directly in the partnership. Required Prepare the journal entry to record Gao's admission to the partnership, and compute the new capital bal- ances, in each of the following cases. Gao invests $60,000 for a 12 percent interest in the partnership. b. Gao invests S50,000 for a 12 percent interest in the partnership. The bonus method is used. Gao invests $72,000 for a 12 percent interest in the partnership. The goodwill method is used, and any revaluation is attributed to goodwill. a. c.
Expert Answer:
Answer rating: 100% (QA)
Answer Journal Entries Journal entries New Capital account balances Accounts and Explanation Debit C... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
Posted Date:
Students also viewed these accounting questions
-
Prepare the journal entry to record Selectist Companys issuance of 104,000 shares of no-par value common stock assuming the shares: a. Sell for $15 cash per share. b. Are exchanged for land valued at...
-
Prepare the journal entry to record income taxes on December 31, 2011, assuming that Turner Corporations income tax expense is $35,000 and that it owes $30,000 in income taxes to the government....
-
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
-
Your home business uses 570 square feet of your 2,850 square foot home. If household expenses for the year were $28,558, how much was alloted to your business? Amount invested
-
A college wants to compare the annual salaries of graduates of the four different streams of its business diploma program, five years after graduation. The college randomly selects graduates from...
-
A city has 74,806 registered automobiles. Each is required to display a bumper decal showing that the owner paid an annual wheel tax of $50. By law, new decals need to be purchased during the month...
-
What is a codebook and what is it used for?
-
On June 30, Reyes Corporation discontinued its operations in Mexico. On September 1, Reyes disposed of the Mexico facility at a pretax loss of $640,000. The applicable tax rate is 25%. Show the...
-
Discuss what is meant by a marketspace, its components and participants, and types. Are there winners and losers in the e - marketplace? Why, or why not? Please discuss and use real life examples to...
-
Fill in the blanks for the ABC analysis process map. Based on the process map, calculate the assigned indirect costs using the traditional method. Explain the pros and cons of this in comparison to...
-
You are a multinational company based in the United States that plans to import goods from Europe in 6 months and requires 500,000 Euros. You are concerned about potential fluctuations in the...
-
A linear analytical model of the automobile engine for the idle speed control system is shown in Fig. 2.245.The input of the system is the throule position that controls the rate of airflow into the...
-
Jane Smith fund in Australia currently manages four asset classes which are Australian equity, US equity, emerging market debt securities, and Australian commercial real estate. In 2021, the...
-
Consider a production function and the resource constraint Y = F(K, Lt) = AKO L and the capital accumulation equation Y = C + I + G e G = K Assume there is no population growth, so L = Lt+1= L (2)...
-
Find the debt to income ratio, the current ratio, and the emergency fund timeline. Blake's Personal Monthly Budget Sources of Income Employment Wages Interest Dividends TOTAL INCOME Sources of...
-
Zippy Co has 1,000,000 issued ordinary shares which are traded in an efficient capital market. The company has just paid dividend of $0.50 per share in 2019. Recent dividends paid by the company are...
-
In Marketing Myopia, Levitt explains that companies/industries lost track of the businesses they were really in. Railroad companies described their business as railroads instead of taking a broader...
-
Carlton Stokes owns and operates a car-detailing business named SuperShine & Detailing. For $150, Carltons business will hand wash and wax customers cars, vacuum the interior, and thoroughly clean...
-
Interfund transfers of the general fund of Contra Costa County for 2014 were as follows: 1. $1,800,000 advance to the Land Development special revenue fund, to permit initial expenditures under a...
-
Microtech Corporation and Webnet Solutions, Inc. have identical balance sheets, as follows (in millions): Assets Current assets...
-
On January 1, 2007, Harrah's Entertainment, Inc. acquired a 70 percent interest in the company that owns Emerald Safari Resort for $600 million in cash and stock. Assume the following information at...
-
Given the four criteria necessary for a sale to be complete, which of the following is not one of those conditions? 1. Delivery has occurred or services rendered. 2. Cash has been collected. 3. The...
-
What is the difference between a business and a pure charity? Between a business and a governmental agency?
-
Sketch the \(P-V\) phase diagram for helium-4 using the sketch of the \(P-T\) phase diagram in Figure 4.3. Ps P S superfluid Pe T To T FIGURE 4.3 Sketch of the P-T phase diagram for helium-4. The...
Study smarter with the SolutionInn App