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attached file s one question I crop it to parts. I will send you 2 more questions.
pleasemake sure you will provise me 100 persent correct
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Attached.
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Accounting Problems
Student name
Institutional affiliation:
2
Accounting Problems
The attached word document addresses the question “Accounting Problems” by answering the
following:
•
Question 1
•
Question 2
•
Question 3
1
Running Head: Accounting Problems
Accounting Problems
Student name
Institutional affiliation:
2
Accounting Problems
Accounting Problems
Question 1
a. The investment by Sergio = $70,000 at interest of 30%
According to the bonus method:
Existing
Capital
Capital
Profit/loss sharing
partner
balances
Ratio
ratio
Tiger
$65,000
43.33
40
Phil
$35,000
23.33
20
Ernie
$50,000
33.33
40
Total
$150,000
100.00
100
Original partners’ capital = $150,000
New partner investment= $70,000
Total capital= $150,000+ $70,000= $220,000
The new partner has investment interest of 30%
Bonus= New partner interest x total capital
= 30/100 x 220,000
= $66,000
Base on the profit sharing ratio, the contribution capital toward the new partner:
3
Accounting Problems
Tigers= $66,000 x 40/100= $26,400
Phil = $66,000 x 20/100= $13,200
Ernie = $66,000 x 40/100= $26,400
Transaction
General journal
Debit
1
Tiger’s Capital
$26,400
Phil’s Capi...