In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following questions is independent of the others.Refer to the information provided above. Assume that David invests $50,000 for a one-fourth interest. Goodwill is to be recorded. The journal to record David's admission into the partnership will include:
A. a credit to David, Capital for $60,000.
B. a debit to goodwill for $7,500.
C. a credit to cash for $50,000.
D. a credit to David, Capital for $50,000.
Answer: A
You might also like to view...
The law of torts is primarily made up of statutory law
a. True b. False Indicate whether the statement is true or false
In the context of the specific environment of organizations, which of the following is a similarity between the public communications approach and a product boycott?
A. Both are more aggressive than media advocacy. B. Both typically involve framing a group's concerns as public issues. C. Both are advocacy group tactics. D. Both create controversies that are likely to receive extensive news coverage.
Sentry Corp. bonds have an annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the yield to maturity on these bonds?
A. 5.56% B. 5.85% C. 6.14% D. 6.45% E. 6.77%
Suppose that a population is known to be normally distributed with mean = 2,000 and standard deviation = 230. If a random sample of size n = 8 is selected, calculate the probability that the sample mean will exceed 2,100
A) 0.2141 B) 0.1871 C) 0.0712 D) 0.1093