Tiger (50% of profits and losses) Phil (30%) Ernie (20%).. $85,000 60,000 55,000 ....
Tiger (50% of profits and losses) Phil (30%) Ernie (20%).. $85,000 60,000 55,000 ....
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 68IIP
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Question
The Distance Plus
Each of the following questions should be viewed independently.
- 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. - 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.
- 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.
Transcribed Image Text:Tiger (50% of profits and losses)
Phil (30%)
Ernie (20%)..
$85,000
60,000
55,000
....
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