The Distance Plus partnership has the following capital balances at the beginning of the current year...
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The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (20%) Ernie (40%) Each of the following questions should be viewed independently. a. If Sergio invests $70,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $60,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests $72,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Required A Required B $ 65,000 35,000 50,000 Complete this question by entering your answers in the tabs below. No 1 If Sergio invests $72,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2 Transaction 1 2 Required C Cash Answer is not complete. Goodwill Tiger, capital General Journal X X X Debit 72,000 X 18,000 X Credit 7,200 x The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (40%) Phil (20%) Ernie (40%) Each of the following questions should be viewed independently. a. If Sergio invests $70,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $60,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests $72,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Required A Required B $ 65,000 35,000 50,000 Complete this question by entering your answers in the tabs below. No 1 If Sergio invests $72,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the goodwill method is used. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2 Transaction 1 2 Required C Cash Answer is not complete. Goodwill Tiger, capital General Journal X X X Debit 72,000 X 18,000 X Credit 7,200 x
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Required A Assuming the bonus method is used the journal entry to record Sergios investment of 70000 ... View the full answer
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
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