Debra and Merina Electronic Equipment Assignment
Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debra’s capital is $190,000, Merina’s capital is $152,000, and they share income in a ratio of 3:2, respectively.
P15-11 Part b
b. Wayne invests the amount needed to give him a one-third interest in the partnership’s capital if no goodwill or bonus is recorded. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
c. Wayne invests $100,000 for a 25 percent interest. Goodwill is to be recorded. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
d. Debra and Merina agree that some of the inventory is obsolete. The inventory account is decreased before Wayne is admitted. Wayne invests $90,000 for a 25 percent interest. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
e. Wayne directly purchases a 25 percent interest by paying Debra $87,000 and Merina $51,000. The land account is increased before Wayne is admitted. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
f. Wayne invests $72,000 for a 20 percent interest in the total capital of $414,000. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
g. Wayne invests $110,000 for a 20 percent interest. Goodwill is to be recorded. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)
We were unable to transcribe this image journal entry worksheet A Record Wayne's investment of $100,000 for a one-fourth interest; goodwill Note: Enter debits before credits. Credit Event General Journal Debit 1 Record entry Clear entry View general journal We were unable to transcribe this image were unable to transcribe this image.
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