Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. e15-6 admission of a partner lo 15-6 in the gmp pa

E15-6 Admission of a Partner LO 15-6 In the GMP partnership (to which Elan seeks...

70.2K

Verified Solution

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!
Become a Member

Other questions asked by students