Reference no: EM133027844
Question - The Forever partnership has the following capital balances at the beginning of the current year:
William (40% of profits and losses) $100,000
Manning (40% of profits and losses) $80,000
Sam (20% of profits and losses) $70,000
Each of the following questions should be viewed independently.
Required -
a. If Arthur invests $80,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
b. If Arthur invests $80,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.
c. If Arthur invests $60,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.
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What journal entry is recorded
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