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Question
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:
A. Acceptance of a new partner who invests $70,000 and receives a $20,000 bonus.
B. Withdrawal of a partner who pays a $10,000 bonus to each of the other partners.
C. Addition of a partner who pays a bonus to each of the other partners.
D. Additional investment into the partnership by Tanner and Jackson.
E. Withdrawal of $10,000 each by Tanner and Jackson upon the admission of a new partner.
Answer
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Related questions
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