As CruMan grows it needs additional facilities. Key executives and outside investors pool personal funds to...

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As CruMan grows it needs additional facilities. Key executives and outside investors pool personal funds to form a real estate partnership to purchase an existing warehouse for long-term lease to CruMan. The partners collectively contribute $200,000 of personal cash while an attorney contributes legal services in the following amounts. Contributed Form Cash Cash Partner Investor Ike President Pamela Lawyer Larry Controller Connie $100,000 $60,000 $50,000 Legal services $40,000 Cash Profit/Loss 40% 24% 20% 16% a) Record the journal entry for establishment of the partnership capital balances using the bonus method b) Record the the journal entry for establishment of the partnership capital balance using the goodwill method As CruMan grows it needs additional facilities. Key executives and outside investors pool personal funds to form a real estate partnership to purchase an existing warehouse for long-term lease to CruMan. The partners collectively contribute $200,000 of personal cash while an attorney contributes legal services in the following amounts. Contributed Form Cash Cash Partner Investor Ike President Pamela Lawyer Larry Controller Connie $100,000 $60,000 $50,000 Legal services $40,000 Cash Profit/Loss 40% 24% 20% 16% a) Record the journal entry for establishment of the partnership capital balances using the bonus method b) Record the the journal entry for establishment of the partnership capital balance using the goodwill method

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Answer Bonus Method i When a new partner is bringing goodwill or another i... View the full answer