Question
In: Accounting
In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and...
|
In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are |
| Mary | $ | 273,600 | |
| Gene | 136,800 | ||
| Pat | 45,600 | ||
| Required: |
| a. |
If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest? (Do not round intermediate calculations.) |
| b. |
Prepare journal entry for the admission of Elan if she invests $80,500 for a 20 percent interest and goodwill is recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) |
| c. |
Prepare journal entry for the admission of Elan if she invests $201,000 for a 20 percent interest. Total capital will be $657,000; the partners use the bonus method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A local dental partnership has been liquidated and the final capital balances are as follows:Atkinson, capital...
A local dental partnership has been liquidated and the final capital balances are as follows:Atkinson, capital (40% of all profits and losses) . . . . . . . . . . . . . . . . $ 70,000Kaporale, capital (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000Dennsmore, capital (20%) ....
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital
$
62,000
Durham, Capital
52,000
Salem, Capital
62,000
According to the articles of partnership, all profits will be
assigned as follows:
Winston will be awarded an annual salary of $10,000 with $5,000
assigned to Salem.
The partners will be attributed interest equal to 10 percent of
the capital balance as of the first day of the year.
The remainder will be assigned on a 5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital $ 64,000
Durham, Capital 54,000
Salem, Capital 64,000
According to the articles of partnership, all profits will be
assigned as follows:
Winston will be awarded an annual salary of $12,000 with $6,000
assigned to Salem.
The partners will be attributed interest equal to 10 percent of
the capital balance as of the first day of the year.
The remainder will be assigned on a 5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital
$
72,000
Durham, Capital
62,000
Salem, Capital
72,000
According to the articles of partnership, all profits will be
assigned as follows:
Winston will be awarded an annual salary of $20,000 with
$10,000 assigned to Salem.
The partners will be attributed interest equal to 10 percent of
the capital balance as of the first day of the year.
The remainder will be assigned on a 5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital
$
56,000
Durham, Capital
46,000
Salem, Capital
56,000
According to the articles of partnership, all profits will be
assigned as follows:
Winston will be awarded an annual salary of $16,000 with $8,000
assigned to Salem.
The partners will be attributed interest equal to 10 percent of
the capital balance as of the first day of the year.
The remainder will be assigned on a 5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances: Winston, Capital $ 72,000 Durham,
Capital 62,000 Salem, Capital 72,000 According to the articles of
partnership, all profits will be assigned as follows: Winston will
be awarded an annual salary of $20,000 with $10,000 assigned to
Salem. The partners will be attributed interest equal to 10 percent
of the capital balance as of the first day of the year. The
remainder will be assigned on a 5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital
$
68,000
Durham, Capital
58,000
Salem, Capital
68,000
According to the articles of partnership, all profits will be
assigned as follows:
Winston will be awarded an annual salary of $16,000 with $8,000
assigned to Salem.
The partners will be attributed interest equal to 10 percent of
the capital balance as of the first day of the year.
The remainder will be assigned on a 5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital
$
74,000
Durham, Capital
64,000
Salem, Capital
74,000
According to the articles of partnership, all profits will be
assigned as follows:
Winston will be awarded an annual salary of $10,000 with $5,000
assigned to Salem.
The partners will be attributed interest equal to 10 percent of
the capital balance as of the first day of the year.
The remainder will be assigned on a 5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital $ 58,000
Durham, Capital 48,000
Salem, Capital 58,000
According to the articles of partnership, all profits will be
assigned as follows: Winston will be awarded an annual salary of
$18,000 with $9,000 assigned to Salem. The partners will be
attributed interest equal to 10 percent of the capital balance as
of the first day of the year. The remainder will be assigned on a
5:2:3...
A partnership begins its first year of operations with the following capital balances: Winston, Capital $...
A partnership begins its first year of operations with the
following capital balances:
Winston, Capital
$
74,000
Durham, Capital
64,000
Salem, Capital
74,000
According to the articles of partnership, all profits will be
assigned as follows:
Winston will be awarded an annual salary of $10,000 with $5,000
assigned to Salem.
The partners will be attributed interest equal to 10 percent of
the capital balance as of the first day of the year.
The remainder will be assigned on a 5:2:3...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Tidewater Company uses the product cost concept of applying the cost-plus approach to product pricing. The...
- Create 5 short-term plan of technology projects that you can perform outside of an I.T. department...
- Derek plans to retire on his 65th birthday. However, he plans to work part-time until he...
- Toady and Froggy were running a vegan cafe together. The business was having financial difficulties.Betelguese, who...
- 1. The following questions concern Jesse Gelsinger who suffered from partial OTC. a. In the...
- Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales...
- TzeMay was one of the first women engineering students at ABC University. She graduated in 1995...
ADVERTISEMENT