Cesar and Damon share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Egan intothe partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Egan are:P 300,000Cesar (60%)Damon (40%)Total300,000600,000Required:Prepare the journal entry(s) for the admission of Egan to the partnership assuming Egan invested P500,000 for the ownershipinterest. Egan paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.

Current Partner’s Capital 600,000 Current Partner’s Interest 50 % Total Implied Capital…

Cesar and Damon share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Egan into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Egan are: Cesar (60%) Damon (40%) P 300,000 300,000 600,000 Total Required: Prepare the journal entry(s) for the admission of Egan to the partnership assuming Egan invested P500,000 for the ownership interest. Egan paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.

Cesar and Damon share partnership profits and losses at 60% and 40%, respectively. The partners agree to admit Egan into the partnership for a 50% interest in capital and earnings. Capital accounts immediately before the admission of Egan are: Cesar (60%) Damon (40%) P 300,000 300,000 600,000 Total Required: Prepare the journal entry(s) for the admission of Egan to the partnership assuming Egan invested P500,000 for the ownership interest. Egan paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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