The following is the current balance sheet for a local partnership of doctors: Cash and current assets Land Building and

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The Following Is The Current Balance Sheet For A Local Partnership Of Doctors Cash And Current Assets Land Building And 1 (204.98 KiB) Viewed 11 times

The following is the current balance sheet for a local partnership of doctors: Cash and current assets Land Building and equipment (net) Totals The following questions represent independent situations: Req A a. E is going to invest enough money in this partnership to receive a 20 percent interest. No goodwill or bonus is to be recorded. How much should E invest? $ 60,000 230,000 180,000 b. E contributes $105,000 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 $50,000 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 $70,000 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 112 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? $ 470,000 Req B to E Liabilities A, capital B, capital C, capital D, capital Totals Complete this question by entering your answers in the tabs below. Individuals A B с D E b. E contributes $105,000 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 $50,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be (b) Capital Balances $ 72,000 52,000 72,000 122,000 152,000 $ 470,000 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 $70,000 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? (c) Capital Balances x Answer is not complete. e. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 112 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? (d) Capital Balances (e) Capital Balances Show less A 7 www