Clinton and Schultz are equal partners in DEMO partnership and they have the following balance sheet: Assets....................................$500,000

Question:

Clinton and Schultz are equal partners in DEMO and they have the following balance sheet:
Assets....................................$500,000
Liabilities......................... ......$300,000
Clinton Capital...........................150,000
Schultz capital......................... ..50000
They decide to bring in a new partner Sanders who pays $500,000 to be an equal partner
A) Make the journal entry the makes if they use the bonus method
B) Make the journal entry the partneship makes if they use the method
Instead of giving the $500,000 to the Sanders gave $250,000 to each Clinton and Schultz
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...