11 Req A Req B to E b. E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances? c. E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances? d. E contributes $55,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital balances? e. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 125 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the withdrawal, what are the individual capital balances of the remaining partners? (b) (c) Individuals Capital Capital Balances Balances A $ 20,000 $ 40,000 $ B $ 32,400 × с $ 8,400 × D $ 11,000 × E $ 0 (d) Capital Balances 90,000 (e) Capital Balances $ 40,000 < Req A Req B to E > Show less ▲
11 Req A Req B to E b. E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances? c. E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances? d. E contributes $55,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital balances? e. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 125 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the withdrawal, what are the individual capital balances of the remaining partners? (b) (c) Individuals Capital Capital Balances Balances A $ 20,000 $ 40,000 $ B $ 32,400 × с $ 8,400 × D $ 11,000 × E $ 0 (d) Capital Balances 90,000 (e) Capital Balances $ 40,000 < Req A Req B to E > Show less ▲
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 3SEA
Related questions
Question
Transcribed Image Text:11
Req A
Req B to E
b. E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be
recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent;
C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances?
c. E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be
recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual
capital balances?
d. E contributes $55,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset
revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10
percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital
balances?
e. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 125 percent of
her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses
equally. After the withdrawal, what are the individual capital balances of the remaining partners?
(b)
(c)
Individuals
Capital
Capital
Balances
Balances
A
$
20,000
$ 40,000
$
B
$
32,400 ×
с
$
8,400 ×
D
$
11,000 ×
E
$
0
(d)
Capital
Balances
90,000
(e)
Capital
Balances
$ 40,000
< Req A
Req B to E >
Show less ▲
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