Wednesday, March 13, 2013

Accounting Midterm Exam ACG-2011: Question 15

A partnership recorded the following journal entry:


  Cash 70,000     
  B. Tanner, Capital 10,000     
  R. Jackson, Capital 10,000     
        H. Rivera, Capital   90,000   

This entry reflects:
rev: 02-03-2011
Additional investment into the partnership by Tanner and Jackson.
Withdrawal of $10,000 each by Tanner and Jackson upon the admission of a new partner.
correct Acceptance of a new partner who invests $70,000 and receives a $20,000 bonus.
Addition of a partner who pays a bonus to each of the other partners.
Withdrawal of a partner who pays a $10,000 bonus to each of the other partners.

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