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  • Chapter 18 Problem 2

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    Bryant and Wade each own 50% of BW. Journal entries are required to record Bryant's interest in BW's assets of $20k cash and $240k PPE, and $100k other assets, and liabilities of $240k current liabilities, $50k long-term debt, with an equity interest of $70k. Separate journal entries record Wade's identical 50% interest in the $20k cash, $100k other assets, $50k long-term debt and $70k equity. The arrangement between Bryant and Wade is a joint operation.

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    Bryant and Wade each own 50% of BW. Journal entries are required to record Bryant's interest in BW's assets of $20k cash and $240k PPE, and $100k other assets, and liabilities of $240k current liabilities, $50k long-term debt, with an equity interest of $70k. Separate journal entries record Wade's identical 50% interest in the $20k cash, $100k other assets, $50k long-term debt and $70k equity. The arrangement between Bryant and Wade is a joint operation.

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    6 views1 page

    Chapter 18 Problem 2

    Uploaded by

    pdmallari12
    Bryant and Wade each own 50% of BW. Journal entries are required to record Bryant's interest in BW's assets of $20k cash and $240k PPE, and $100k other assets, and liabilities of $240k current liabilities, $50k long-term debt, with an equity interest of $70k. Separate journal entries record Wade's identical 50% interest in the $20k cash, $100k other assets, $50k long-term debt and $70k equity. The arrangement between Bryant and Wade is a joint operation.

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    CHAPTER 18 – Problem 2

    Required 1:
    Journal entries to record interest of BRYANT in the Assets,
    Liabilities and Equity in BW.
    Cash (40,000 x 50%) P 20,000
    Property, plant and equipment 240,000
    Other assets (200,000 x 50%) 100,000
    Current liabilities P 240,000
    Long-term debt (100,000 x 50%) 50,000
    Equity (140,000 x 50%) 70,000

    Required 2:
    Journal Entries to record interest of WADE in the Assets,
    Liabilities and Equity in BW.
    Cash (40,000 x 50%) P 20,000
    Other Assets (200,000 x 50%) 100,000
    Long-term Debt (100,000 x50%) P 50,000
    Equity (140,000 x 50%) 70,000

    The Joint arrangement is a Joint Operation.

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