The Distance Plus partnership has the following capital balances at the beginning of the current year:Each of the following questions should be viewed independently.If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Tiger (50% of profits and losses)Phil (30%)Ernie (20%)..$85,00060,00055,000....

Under the bonus method, the total capital investment is calculated by adding the investment of a new…

Answered: Tiger (50% of profits and losses) Phil…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

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The Distance Plus partnership has the following capital balances at the beginning of the current year:

Each of the following questions should be viewed independently.

If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.
If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

Tiger (50% of profits and losses)
Phil (30%)
Ernie (20%)..
$85,000
60,000
55,000
....

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