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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%)

 

95,000

 

 

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Accounting 5 Months Ago 43 Views
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