Individuals (b) Capital Balances (c) Capital Balances (d) Capital Balances (e) Capital Balances A $ 46,000 $ 66,000 $ 116,000 $ 146,000 B C D E The following is the current balance sheet for a local partnership of doctors: Liabilities $ 66,000 Cash and current assets $ 64,000 Land 208,000 A, capital 46,000 Building and equipment (net) 168,000 B, capital 66,000 C, capital 116,000 D, capital 146,000 Totals $ 440,000 Totals $ 440,000 The following questions represent independent situations: b. E contributes $102,000 in cash to the business to receive a 20 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 $36,000 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 $64,000 in cash to the business to receive a 18 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 130 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?
Individuals (b) Capital Balances (c) Capital Balances (d) Capital Balances (e) Capital Balances A $ 46,000 $ 66,000 $ 116,000 $ 146,000 B C D E The following is the current balance sheet for a local partnership of doctors: Liabilities $ 66,000 Cash and current assets $ 64,000 Land 208,000 A, capital 46,000 Building and equipment (net) 168,000 B, capital 66,000 C, capital 116,000 D, capital 146,000 Totals $ 440,000 Totals $ 440,000 The following questions represent independent situations: b. E contributes $102,000 in cash to the business to receive a 20 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 $36,000 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 $64,000 in cash to the business to receive a 18 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 130 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?
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 2BCRQ
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Question
Transcribed Image Text:Individuals
(b)
Capital
Balances
(c)
Capital
Balances
(d)
Capital
Balances
(e)
Capital
Balances
A
$ 46,000
$ 66,000 $ 116,000 $
146,000
B
C
D
E
Transcribed Image Text:The following is the current balance sheet for a local partnership of doctors:
Liabilities $ 66,000
Cash and current assets
$ 64,000
Land
208,000 A, capital
46,000
Building and equipment (net)
168,000 B, capital
66,000
C, capital
116,000
D, capital
146,000
Totals
$ 440,000 Totals $ 440,000
The following questions represent independent situations:
b. E contributes $102,000 in cash to the business to receive a 20 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 $36,000 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 $64,000 in cash to the business to receive a 18 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 130
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?
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