Required: 1. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $800,000 for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Fran paid the money directly to Dan and to Ellie for 50% of each of their respective capital interests. The partnership records goodwill. 2. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $1,000,000 for the ownership interest. Fran paid the money to the partnership for a 50% interest in capital and earnings. Assume the valuation is based on the capital of the current partnership, which is fairly valued. The partnership records goodwill. 3. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $1,400,000 for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Fran paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.
Required: 1. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $800,000 for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Fran paid the money directly to Dan and to Ellie for 50% of each of their respective capital interests. The partnership records goodwill. 2. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $1,000,000 for the ownership interest. Fran paid the money to the partnership for a 50% interest in capital and earnings. Assume the valuation is based on the capital of the current partnership, which is fairly valued. The partnership records goodwill. 3. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested $1,400,000 for the ownership interest, and that this is a fair price for that share of the partnership to be acquired. Fran paid the money to the partnership for a 50% interest in capital and earnings. The partnership records goodwill.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
1. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested
$800,000 for the ownership interest, and that this is a fair price for that share of the partnership to be
acquired. Fran paid the money directly to Dan and to Ellie for 50% of each of their respective capital
interests. The partnership records goodwill.
2. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested
$1,000,000 for the ownership interest. Fran paid the money to the partnership for a 50% interest in capital
and earnings. Assume the valuation is based on the capital of the current partnership, which is fairly
valued. The partnership records goodwill.
3. Prepare the journal entry(s) for the admission of Fran to the partnership assuming Fran invested
$1,400,000 for the ownership interest, and that this is a fair price for that share of the partnership to be
acquired. Fran paid the money to the partnership for a 50% interest in capital and earnings. The
partnership records goodwill.
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