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question the distance plus partnership has the following capital balancesat the begi 4290266

Question

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

Tiger (40% of profits andlosses)

$

110,000

  Phil (40%)

 

80,000

  Ernie (20%)

 

95,000

 

Each of the following questions should be viewedindependently.

a.

If Sergio invests $130,000 in cash in the business for a 30percent interest, what journal entry is recorded? Assume that thebonus method is used.

 

Transaction

General Journal

Debit

Credit

 

 

 

 

 

b.

If Sergio invests $120,000 in cash in the business for a 30percent interest, what journal entry is recorded? Assume that thebonus method is used.

Transaction

General Journal

Debit

Credit

 

c.

If Sergio invests $75,000 in cash in the business for a 20percent interest, what journal entry is recorded? Assume that thegoodwill method is used.

Transaction

General Journal

Debit

Credit

 

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