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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: Multiple Choice a credit to cash for $50,000. a debit to goodwill for $7,500. a credit to David, Capital for $60,000. a credit to David, Capital for $50,000.-- WRONG ANSWER

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: Multiple Choice a credit to cash for $50,000. a debit to goodwill for $7,500. a credit to David, Capital for $60,000. a credit to David, Capital for $50,000.-- WRONG ANSWER

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Multiple Choice a credit to cash for $50,000. a debit to goodwill for $7,500. a credit to David, Capital for $60,000. a credit to David, Capital for $50,000.-- WRONG ANSWER
Transcribed Image Text: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: Multiple Choice a credit to cash for $50,000. a debit to goodwill for $7,500. a credit to David, Capital for $60,000. a credit to David, Capital for $50,000.-- WRONG ANSWER
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