The Distance Plus partnership has the following capital balances at the beginning of the current year along with respective profit and loss percentages: Tiger (50%) $ 165,000 Phil (20%) 135,000 Ernie (30%) 150,000 Each of the following questions should be viewed independently. Required: If Sergio invests $190,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $100,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used. If Sergio invests $120,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required C If Sergio invests $190,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Required A: No Transaction General Journal Debit Credit 1. a. Tiger, capitalselected answer incorrect not attempted 31,000selected answer incorrect Phil, capitalselected answer correct not attempted 12,400selected answer correct Ernie, capitalselected answer correct not attempted 18,600selected answer correct Required B If Sergio invests $100,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Transaction General Journal Debit Credit 1 a Tiger, capitalselected answer correct 5,000selected answer correct not attempted Phil, capitalselected answer correct 2,000selected answer correct not attempted Ernie, capitalselected answer correct 3,000selected answer correct not attempted Sergio, capitalselected answer incorrect not attempted 10,000selected answer incorrect Required C If Sergio invests $120,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Transaction General Journal Debit Credit 1 a Cashselected answer incorrect 120,000selected answer incorrect not attempted Sergio, capitalselected answer incorrect not attempted 12,000selected answer incorrect 2 b Goodwillselected answer incorrect 30,000selected answer incorrect not attempted Tiger, capitalselected answer incorrect not attempted 15,000selected answer incorrect Phil, capitalselected answer incorrect not attempted 6,000selected answer incorrect Ernie, capitalselected answer incorrect not attempted 9,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
The Distance Plus
| Tiger (50%) | $ 165,000 |
|---|---|
| Phil (20%) | 135,000 |
| Ernie (30%) | 150,000 |
Each of the following questions should be viewed independently.
Required:
-
If Sergio invests $190,000 in cash in the business for a 20 percent interest, what
journal entry is recorded? Assume that the bonus method is used. -
If Sergio invests $100,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
-
If Sergio invests $120,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the
goodwill method is used.Answer is not complete.
Complete this question by entering your answers in the tabs below.
- Required A
- Required B
- Required C
If Sergio invests $190,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
Required A:No Transaction General Journal Debit Credit 1. a. Tiger, capitalselected answer incorrect
not attempted 31,000selected answer incorrect Phil, capitalselected answer correct not attempted 12,400selected answer correct Ernie, capitalselected answer correct not attempted 18,600selected answer correct -
- Required B
If Sergio invests $100,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No Transaction General Journal Debit Credit 1 a Tiger, capitalselected answer correct 5,000selected answer correct not attempted Phil, capitalselected answer correct 2,000selected answer correct not attempted Ernie, capitalselected answer correct 3,000selected answer correct not attempted Sergio, capitalselected answer incorrect not attempted 10,000selected answer incorrect - Required C
If Sergio invests $120,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
No Transaction General Journal Debit Credit 1 a Cashselected answer incorrect 120,000selected answer incorrect not attempted Sergio, capitalselected answer incorrect not attempted 12,000selected answer incorrect 2 b Goodwillselected answer incorrect 30,000selected answer incorrect not attempted Tiger, capitalselected answer incorrect not attempted 15,000selected answer incorrect Phil, capitalselected answer incorrect not attempted 6,000selected answer incorrect Ernie, capitalselected answer incorrect not attempted 9,000
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