The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams $ 180,000 160,000 Fergie Gomez 150,000 140,000 $630,000 Total capital Answer each of the following Independent questions: Required: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $183,000 based on the terms of the original partnership agreement. If the goodwill method is used, what Is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $345,000 based on the terms of the original partnership agreement. If the bonus method is used, what Is the capital balance of the remaining three partners? Note: Do not round your Intermediate calculations. Round your final answers to the nearest dollar amounts. a. Pineda Capital Balance Adams Gomez b. Adams Fergie Gomez

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The E.N.D. partnership has the following capital balances as of the end of the current year:
Pineda
Adams
Fergie
$ 180,000
160,000
150,000
Gomez
Total capital
140,000
$ 630,000
Answer each of the following Independent questions:
Required:
a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid
$183,000 based on the terms of the original partnership agreement. If the goodwill method is used, what
Is the capital balance of the remaining three partners?
b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid
$345,000 based on the terms of the original partnership agreement. If the bonus method is used, what
Is the capital balance of the remaining three partners?
Note: Do not round your Intermediate calculations. Round your final answers to the nearest dollar
amounts.
a. Pineda
Adams
Gomez
b. Adams
Fergie
Gomez
Capital
Balance
Transcribed Image Text:The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie $ 180,000 160,000 150,000 Gomez Total capital 140,000 $ 630,000 Answer each of the following Independent questions: Required: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $183,000 based on the terms of the original partnership agreement. If the goodwill method is used, what Is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $345,000 based on the terms of the original partnership agreement. If the bonus method is used, what Is the capital balance of the remaining three partners? Note: Do not round your Intermediate calculations. Round your final answers to the nearest dollar amounts. a. Pineda Adams Gomez b. Adams Fergie Gomez Capital Balance
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