Computation of bonus on shares sold & share of bonus

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Reference no: EM1310846

Computation of bonus on shares sold & share of bonus to each partner.

1. Detaldo Co held bonds of Schooner corp. with a cost of $125,000and a market value of $127,000. Detaldo also held 1,500 shares of Tranco common stock with a cost of $25,000 and a market value of $24,700. Prepare the journal entry to record the market value of the investments as of Dec 31.

2. Groh and Jackson are partners. Groh's capital balance in the partnership is $64,000 and Jackson's capital balance is 61,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 20% interest. Block will invest 35,000 in the partnership. The bonus that is granted to Groh and Jackson equals:

a) $1500 each

b) 1875 each

c) 3750 each

d) 1920 to Groh; 1830 to Jackson

e) $0 because Groh and Jackson actually grant a bonus back to Block

Reference no: EM1310846

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