The AT Partnership was organized several years ago, and on January 1, 2011, the partners agree to admit Car for a 40 percent interest in capital and earnings. Capital account balances and profit- and losssharing ratios at January 1, 2011, before the admission of Car, are as follows:
Aid (50%) | $500,000 |
Tha (50%) | 280,000 |
REQUIRED: Prepare journal entries to record the admission of Car for a 40 percent interest in the capital and rights to future profits under the following independent assumptions.
1. Car pays $450,000 directly to Aid and Tha for 40 percent of each of their interests, and the bonus procedure is used.
2. Car pays $600,000 directly to Aid and Tha for 40 percent of each of their interests, and goodwill is recorded.
3. Car invests $450,000 in the partnership for her 40 percent interest, and goodwill is recorded.
4. Car invests $600,000 in the partnership for her 40 percent interest, and goodwill is recorded.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.