The Distance Plus partnership has the following capital balances at the beginnin
ID: 2490997 • Letter: T
Question
The Distance Plus partnership has the following capital balances at the beginning of the current year:
Each of the following questions should be viewed independently.
If Sergio invests $130,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $120,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $75,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
Tiger (40% of profits and losses) $ 110,000 Phil (40%) 80,000 Ernie (20%) 95,000Explanation / Answer
Answer:
a)
Cash Dr. 130000
Tiger capital Cr 2200
Phill Capital Cr. 2200
Ernie Capital Cr. 1100
Sergio capital Cr. 124500
c) Goodwill Dr. 15000
Tiger Capital Cr 6000
Phill capital Cr. 6000
Erniw capital Cr. 3000
Cash Dr. 75000
Sergio capital Cr 75000...
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.