Sawsan and Ali invested $500,000 and $200,000 respectively in a partnership, and they share profits and losses equally. At the beginning of 2024 new partner Maryam admitted to the partnership. Instructions: Prepare the journal entry to record the admission of Maryam into the partnership under each of the following separate conditions: 1- Maryam acquires a 30% of the total new capital for a $300,000 cash investment. 2. Maryam invests $200,000 for a 25% interest in capital. Implicit goodwill is to be recorded.

Sawsan and Ali invested $500,000 and $200,000 respectively in a partnership, and they share profits and losses equally. At the beginning of 2024 new partner Maryam admitted to the partnership. Instructions: Prepare the journal entry to record the admission of Maryam into the partnership under each of the following separate conditions: 1- Maryam acquires a 30% of the total new capital for a $300,000 cash investment. 2. Maryam invests $200,000 for a 25% interest in capital. Implicit goodwill is to be recorded.

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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