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nus is recorded, how much must Elan invest for a one-third interest? ry for the admission of Elan if she invests $81,200 for a 20 percent interest and god

nus is recorded, how much must Elan invest for a one-third interest? ry for the admission of Elan if she invests $81,200 for a 20 percent interest and god

FINANCIAL ACCOUNTING
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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In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are Mary Gene Pat $ 280,800 140, 400 46,800 Required: a. If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest? b. Prepare journal entry for the admission of Elan if she invests $81,200 for a 20 percent interest and goodwill is recorded. c. Prepare journal entry for the admission of Elan if she invests $201,000 for a 20 percent interest. Total capital will be $669,000; the partners use the bonus method. Complete this question by entering your answers in the tabs below. Required A Required B Required C If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest? Note: Do not round intermediate calculations. Elan must invest $ 156,000 < Required A Required B >
Transcribed Image Text:In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are Mary Gene Pat $ 280,800 140, 400 46,800 Required: a. If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest? b. Prepare journal entry for the admission of Elan if she invests $81,200 for a 20 percent interest and goodwill is recorded. c. Prepare journal entry for the admission of Elan if she invests $201,000 for a 20 percent interest. Total capital will be $669,000; the partners use the bonus method. Complete this question by entering your answers in the tabs below. Required A Required B Required C If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest? Note: Do not round intermediate calculations. Elan must invest $ 156,000 < Required A Required B >
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