Advanced Accounting (Looseleaf)
Advanced Accounting (Looseleaf)
12th Edition
ISBN: 9780077632595
Author: Hoyle
Publisher: MCG
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Chapter 14, Problem 15P
To determine

Identify the amount of goodwill that should be recognized and person D’s beginning capital balance.

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12. Following are the capital account balances and profit and loss percentages (indicated parenthetically) for the William, Jennings, and Bryan partnership: William (40%) $ 280,000 Jennings (40%) 230,000 Bryan (20%) 210,000 Darrow invests $325,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings’s capital balance? Multiple Choice $234,600 $230,000 $327,500 $233,450
Following are the capital account balances and profit and loss percentages indicated parenthetically) for the Alden, Boyd, and Carmel partnership Alden (40%) Boyd (40%) Carmel (20%) $ 230,000 180,000 160,000 Required: Del Mar trivests $260,000 in cash for a 30 percent ownership Interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, compute Boyd's capital balance. Bonus to onginal partners Boyd's ownership share Boyd's share of bonus Boyd's capital before bonus Boyd's capital after bonus 5 $ 0
W and X are partners who have agreed to admit Y, who will invest P15,000 for a 20 percent interest. The previous capital balances were P15,000 and P30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account?     a. P6,000 credit b. P12,000 credit c. P15,000 credit d. P9,000 credit
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