Business, 05.05.2020 07:59 dion27

Assume that Partners A and B each report a Capital Account of $300,000. Partner C wants to join the partnership as an equal one-third partner. Because the partnership has been very profitable, Partners A and B require Partner C to contribute $800,000 in cash to the partnership in return for a one-third interest. Assume that Partners A and B share profits 60% and 40%, respectively, prior to the admission of Partner C. After admission of Partner C, Partners A and B retain their relative proportion of profit allocation after granting Partner C a 25% profit-allocation interest. Use the Bonus Method to record the journal entry on the books of the partnership to reflect the admission of Partner C.

Prepare journal entry on the books of the partnership to reflect the admission of Partner C.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 16:40

Dollywood corporation accumulates the following data concerning a mixed cost, using miles as the activity level. miles driven total cost january 10,000 $16,500 february 8,000 $14,500 march 9,000 $12,500 april 7,000 $12,000 compute the variable and fixed cost elements using the high-low method

Answers: 3

Answer

Business, 22.06.2019 08:00

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)

Answers: 3

Answer

Business, 22.06.2019 09:30

What are two benefits of consumer programs

Answers: 2

Answer

Business, 22.06.2019 11:20

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Answers: 3

Answer

You know the right answer?

Assume that Partners A and B each report a Capital Account of $300,000. Partner C wants to join the...

Questions