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 (50%) Phil (30%) Ernie (20%) $ 85,000 60,000 55,000 Each of the following questions should be viewed independently. Required: a. If Sergio invests $100,000 in cash in the business for a 25 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 25 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 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Complete this question by entering your answers in the tabs below. Required A Required B Required C If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Requirement A: 1. Record the admission of new partner under bonus method. Requirement B: 1. Record the admission of new partner under bonus method. Requirement C: 7 1. Record the entry for goodwill allocation, during the admission of a new partner. The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (50%) Phil (30%) Ernie (20%) $ 85,000 60,000 55,000 Each of the following questions should be viewed independently. Required: a. If Sergio invests $100,000 in cash in the business for a 25 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 25 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 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Complete this question by entering your answers in the tabs below. Required A Required B Required C If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Requirement A: 1. Record the admission of new partner under bonus method. Requirement B: 1. Record the admission of new partner under bonus method. Requirement C: 7 1. Record the entry for goodwill allocation, during the admission of a new partner.
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Requirement A 1 Record the admission of new partner under bonus method Cash Debi... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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