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%) Total P 300,000 300,000 600,000 Required: Prepare the journal entry(s) for the admission of Egan to the partnership assuming Egan invested P700,000 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
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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 P700,000 for the ownership
interest. Egan paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.
Transcribed Image Text: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 P700,000 for the ownership interest. Egan paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.
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