E15-6 Admission of a Partner LO 15-6 In the GMP partnership (to which Elan seeks...
70.2K
Verified Solution
Link Copied!
Question
Accounting
E15-6 Admission of a Partner LO 15-6
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
$
271,200
Gene
135,600
Pat
45,200
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 $80,600 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 $653,000; 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.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
