Which the entry to record investment includes a

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Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently Php240,000 and Php260,000, respectively.

Problem 1:  If Jewel is given a 20% interest in the partnership in exchange for Php90,000 cash, the entry to record her investment includes a:

a) credit to Jim, capital for Php7,000

b) credit to cash for Php90,000

c) credit to Jewel, capital for Php90,000

d) credit to Jewel, capital for Php118,000

Problem 2: If Jewel is given a 25% interest in the partnership in exchange for Php200,000, the entry to record her investment includes a:

a) credit to Jim, capital for Php6,250

b) debit to Joe, capital for Php18,750

c) credit to Jewel, capital for Php200,000

d) debit to Jewel, capital for Php175,000

Problem 3:  If Jewel is given a 15% interest in the partnership in exchange for Php100,000, the entry to record her investment includes a:

a) credit to Jewel, capital for Php100,000

b) debit to Jim, capital for Php6,250

c) credit to Jim, capital for Php6,250

d) credit to Joe, capital for Php7,500

Reference no: EM132786886

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