AccountingGibbs, McGee and DuckyGibbs and McGee, partners in the G & Mpartnership, have capital balances of $100,000and $40,000 and share income in a ratio of 4:1,respectively. Ducky is to be admitted into thepartnership with a 20 percent interest in thebusiness.Record the journal entries for Ducky's admissionfor each of the following independent situations:Ducky invests $60,000, and goodwill is to berecorded.Ducky invests $60,000. Total capital is to be$200,000.Ducky purchases the 20 percent interest by payingGibbs $22,000 and McGee $11,000. Ducky isassigned 20 percent of each of the others' capitalaccounts.Ducky invests $32,000. Total capital is to be$172,000.Ducky invests $32,000, and goodwill is to berecorded.

Journal Entry Here importance of recording the partners admission into the partnership either for…

recorded. Ducky invests $60,000. Total capital is to be $200,000. Ducky purchases the 20 percent interest by paying Gibbs $22,000 and McGee $11,000. Ducky is assigned 20 percent of each of the others' capital accounts. Ducky invests $32,000. Total capital is to be $172,000. Ducky invests $32,000, and goodwill is to be recorded.

recorded. Ducky invests $60,000. Total capital is to be $200,000. Ducky purchases the 20 percent interest by paying Gibbs $22,000 and McGee $11,000. Ducky is assigned 20 percent of each of the others' capital accounts. Ducky invests $32,000. Total capital is to be $172,000. Ducky invests $32,000, and goodwill is to be recorded.

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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