Solution-Prepare the journal entry to record C admission

Prepare the journal entry to record C admission

Reference no: EM133112703

Question - A, B and C are partners in ABC Partnership. Profits and losses are shared in the ratio of 5:3:2. On July 1, 2020, when their capital balances stood at P50,000, P25,000, and P30,000, respectively, they agree to admit D to the partnership.

Required - Prepare the journal entry to record C's admission to the partnership under each of the following assumptions:

a) D pays B P15,000 for 50% of her interest.

b) D pays A P10,000 and C P7,500 for 25% of each of their interests.

c) D invests P20,000 cash in the partnership for a 10% interest. (Goodwill)

d) D invests P20,000 cash in the partnership for a 20% interest. (Goodwill)

e) D invests P45,000 cash in the partnership for a 30% interest. (No Goodwill/No Asset Revaluation)

Reference no: EM133112703

Questions Cloud

Estate tax liability in situation : lf Jane and John fail to take advantage of the portable estate exemption by forgetting to file IRS Form T06 at the death of the first spouse, will there be a ta

Determine the number of units of belleview must sell : During FY 2021, Belleview Company plans to sell Widgets for $6.00 a unit. Determine the number of units of Belleview must sell

What is the stock dividend yield : Assume that a stock pays a quarterly dividend of $0.48/share, has a stock price of $52 and quarterly EPS of $2.54.

Calculate the option price : Calculate the option price using the following information:

Prepare the journal entry to record C admission : Prepare the journal entry to record C's admission to the partnership under each of the following assumptions: D pays B P15,000 for 50% of her interest

Calculate the value of the contract : Catan Bank has entered in a long 180-day FRA on the 90-day Treasury rate with the agreed upon rate of 2.5 percent. The notional amount is $4.1 million. Calculat

Credit cards as a primary method of payment : It can be easy to go into debt by using a credit card unwisely. However, as technology advances and we're able to pay with our phone or our watch, we're relying

Debt by using a credit card : It can be easy to go into debt by using a credit card unwisely. However, as technology advances and we're able to pay with our phone or our watch, we're relying

What is the actual interest rate for this loan : Your cousin is due a tax refund of $400 in six weeks. What is the actual interest rate for this loan

User Account

All Pages

Prepare the journal entry to record C admission

Reference no: EM133112703

Reference no: EM133112703

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

During the current year maine savings and loan association

How many years do these bonds have left until they mature

Summarize caterpillar inc organizational structure

How basketball rules are related to the morality standards

Complete the table for the year ended December

Prepare Gold Stripe State Bank Journal entry

Financial information about a public limited company

How much was Olan net cash provided by operating activities

Which of the items are exclusions from gross income

What is the amount of the annual depreciation

Vorteck inc manufactures snowsuits vorteck is considering

What should be reported as investment in happy inc on joy

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT