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

See similar textbooks

Similar questions

1. Annual salary allowance to Gonzalez of $25,000. 2. Interest of 5% on each partner's capital balance on January 1. 3. Any remaining net income divided to Gonzalez and Van Home, 2:1. Gonzalez and Van Horne had $126,000 and $189,000, respectively, in their January 1 capital balances. Net income for the year was $115,000. Required: How much net income should be distributed to Gonzalez and Van Horne? Gonzalez: Van Horne: S
Partners Thelma Lou and Aunt Bee each have a $50,000 capital balance and share profits and losses in a 2:1 ratio, respectively. The cash balance is $40,000, non-cash assets total $210,000, and liabilities total $150,000. If the non-cash assets are sold for $180,000, what amount will Thelma Lou receive after liquidation? $40,000 O $70,000 O $30,000 O $50,000 Which of the following statements about partnership financial statements is false? O The salary that a partner receives for profit sharing is reported on the partnership income statement. O The financial statements of a partnership are similar to those of a proprietorship. The partnership balance sheet will contain a withdrawal account for each partner. A partnership's balance sheet will contain a capital account for each partner.
please do all u can
Singer and McMann are partners in a business. Singer's original capital was $43,200 and McMann's was $52,800. They agree to salaries of S10,500 and $18,000 for Singer and McMann, respectively, and 10% interest on original capital. If they agree to share the remaining profits and losses in a 3:2 ratio, what will Singer's share of the income be if the income for the year is $66,600? Oa. S10,500 Ob. $14,820 Oc. $31,920 Od. S39,960
If C retired and received ₱90,000 as a retirement price, how much will be the adjusted capital of A under bonus method?
on June 1, john contributed $7,000 in cash and property with an adjusted basis of $9,000 and a fair market value of $15,000, for a 20% share of Be Great, a business organized as a partnership. What is john's beginning basis? (a) $7,000, (b) $9,000, (c) $16,000, (d) $22,000
Bernstein invests office equipment with a fair market value of $62,000, delivery equipment with a fair market value of $75,000, and cash of $30,000. He owes $27,000, represented by a note on the delivery equipment. The amount of Bernsteins' capital would be a.$140,000. b.$30,000. c.$167,000. d.$137,000.
Please Help Me
A man borrowed P2,000.00 from his brother on June 1, 1928 and P500.00 on June 1, 1930, agreeing that the money is worth 5% compounded annually. The man paid P500.00 on June 1, 1931, P400.00 on June 1, 1932 and P700.00 on June 1, 1933. What pay on June 1, 1936 to discharge all remaining liability?
David earned 10 percent on the $200,000 he invested in a special account at his credit union. Interest was paid semi-annually. His effective rate of interest was: Select one: a. 10.55% b. 10.25% c. 10.56% d. 15.75%
Howard bought a $ 10,000.00 GIC bearing interest at 7% c.a due principal and interest in 10 years. He sold the GIC after 50 months to an investor who expects to earn 5% c.s.a. How much did the investor pay Howard for the GIC?