Acc407 Advanced Accounting: P14-17 The Distance Plus partnership has the following capital balances

Acc407 Advanced Accounting: P14-17 The Distance Plus partnership has the following capital balances

Acc407 Advanced Accounting

Problem 14-17
The Distance Plus partnership has the following capital balances at the beginning of the current year:
Tiger (50% of profits and losses) 85,000
Phil (30%) 60,000
Ernie (20%) 55,000
200,000

Each of the following questions should be viewed independently.
a. If Sergio invest $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.
Acc407 Advanced Accounting: P14-17 The Distance Plus partnership has the following capital balances
.XLS file (27.0KB)
$18
Discount:
-0%
Total price:
$18
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