Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are P60,000, P80,000, and P120,000, respectively. 13. Assuming Bud is given a 20% interest in the partnership for an P80,000 cash investment, the entry to record his investment includes a: a. credit to Bud, capital for P80,000 b. debit to loss on sale of partnership interest for P12,000 C. debit to Daisy, capital for P4,800 d credit to Donna, capital for P3,600 14. Assuming Bud is given a 15% interest in the partnership for a P70,000 cash investment, the entry to record his investment includes a: a. credit to Donna, capital for P6,150 b. credit to Bud, capital for P70,000 C. debit to Rick, capital for P6,150 d. credit to gain on sale of partnership interest for P20,500
Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are P60,000, P80,000, and P120,000, respectively. 13. Assuming Bud is given a 20% interest in the partnership for an P80,000 cash investment, the entry to record his investment includes a: a. credit to Bud, capital for P80,000 b. debit to loss on sale of partnership interest for P12,000 C. debit to Daisy, capital for P4,800 d credit to Donna, capital for P3,600 14. Assuming Bud is given a 15% interest in the partnership for a P70,000 cash investment, the entry to record his investment includes a: a. credit to Donna, capital for P6,150 b. credit to Bud, capital for P70,000 C. debit to Rick, capital for P6,150 d. credit to gain on sale of partnership interest for P20,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Donna, Rick, and Daisy are partners sharing profits in a 3:3:4 ratio, respectively. They have been overwhelmed by the amount of work recently and have agreed to admit Bud to the partnership for a cash investment. The current balances in their capital accounts are P60,000, P80,000, and P120,000, respectively.
13. Assuming Bud is given a 20% interest in the partnership for an P80,000 cash investment, the entry to record his investment includes a:
a. credit to Bud, capital for P80,000
b. debit to loss on sale of partnership interest for P12,000
C. debit to Daisy, capital for P4,800
d credit to Donna, capital for P3,600
14. Assuming Bud is given a 15% interest in the partnership for a P70,000 cash investment, the entry to record his investment includes a:
a. credit to Donna, capital for P6,150
b. credit to Bud, capital for P70,000
C. debit to Rick, capital for P6,150
d. credit to gain on sale of partnership interest for P20,500
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