The Distance Plus partnership has the following capital balances at the beginning of the current year. Tiger (4e% of profits and losses) Phảl (40%) Ernie (20) $ 140,000 110,000 125,000 Each of the following questions should be viewed independently. a. If Sergio invests $180,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests S130,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

The Distance Plus partnership has the following capital balances at the beginning of the current year. Tiger (4e% of profits and losses) Phảl (40%) Ernie (20) $ 140,000 110,000 125,000 Each of the following questions should be viewed independently. a. If Sergio invests $180,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. b. If Sergio invests $150,000 in cash in the business for a 30 percent interest, what journal entry is recorded? Assume that the bonus method is used. c. If Sergio invests S130,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

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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