The Distance Plus parnership has the following capital balances at the beginning of the current year. Tiger (40% of profits and losses) $65,000 Phil (20%) $35,000 Ernie (40%) $50,000 Each of the following questions should be viewed independently. a. If Sergio invests $70,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the bonus method is used. b. If Sergio invests $60,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the bonus method is used. c. If Sergio invests $72,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the goodwill method is used.
The Distance Plus parnership has the following capital balances at the beginning of the current year. Tiger (40% of profits and losses) $65,000 Phil (20%) $35,000 Ernie (40%) $50,000 Each of the following questions should be viewed independently. a. If Sergio invests $70,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the bonus method is used. b. If Sergio invests $60,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the bonus method is used. c. If Sergio invests $72,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the goodwill method is used.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
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The Distance Plus parnership has the following capital balances at the beginning of the current year.
Tiger (40% of
Phil (20%) $35,000
Ernie (40%) $50,000
Each of the following questions should be viewed independently.
a. If Sergio invests $70,000 in cash in the business for a 30% interest, what
b. If Sergio invests $60,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the bonus method is used.
c. If Sergio invests $72,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the
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