In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.Refer to the information provided above. Assume that Erin invests $40,000 for a one-fifth interest. Goodwill is to be recorded. The journal entry to record Erin's admission into the partnership will include:
A. a credit to Erin, Capital for $40,000
B. a credit to Cash for $40,000
C. a credit to Erin, Capital for $45,000
D. a debit to Goodwill for $4,000
Answer: C
You might also like to view...
What types of personal problems have been used to alter dysfunctional, habitual behaviors?
a. Weight loss and eating problems b. Eating problems c. Smoking problems and eating problems d. Weight loss, eating problems, and smoking problems
The 4E framework of social media includes
A. emphasize, excite, educate, engage. B. expect, emphasize, educate, engage. C. excite, educate, entertain, engage. D. expand, engage, educate, emphasize. E. excite, educate, experience, engage.
When using the effective-interest amortization method, the amount of the interest payment is calculated using the face value of the bonds and the stated interest rate
Indicate whether the statement is true or false
Of the following, the one that does not terminate an offer is
a. a counteroffer. b. acceptance. c. the serious illness of the offeror. d. impossibility.