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:Cesar (60%)Damon (40%)P 300,000300,000600,000TotalRequired:Prepare the journal entry(s) for the admission of Egan to the partnership assuming Egan invested P700,000 for the ownershipinterest. Egan paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.

Capital contribution by Egan 700000 /Share of Egan 50% Total Required capital Of Partnership…

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.

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

Section: Chapter Questions

Problem 1Q

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