The following is the current balance sheet for a local partnership of doctors: $ 30,000 Liabilities 150,000 A, capital 1

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The Following Is The Current Balance Sheet For A Local Partnership Of Doctors 30 000 Liabilities 150 000 A Capital 1 1 (42.03 KiB) Viewed 21 times

The Following Is The Current Balance Sheet For A Local Partnership Of Doctors 30 000 Liabilities 150 000 A Capital 1 2 (57.17 KiB) Viewed 21 times

The following is the current balance sheet for a local partnership of doctors: $ 30,000 Liabilities 150,000 A, capital 140,000 B, capital C, capital D, capital Totals Cash and current assets Land Building and equipment (net) Totals 320,000 The following questions represent independent situations: $ 42,000 22,000 42,000 92,000 122,000 $ 320,000 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? b. E contributes $42.000 in cash to the business to receive a 12 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 $30,000 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 $40,000 in cash to the business to receive a 15 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?
Reg A b. E contributes $42,000 in cash to the business to receive a 12 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 $30,000 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 $40,000 in cash to the business to receive a 15 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? Show less A Individuals A BU В Req B to E C DE E (b) Capital Balances (c) Capital Balances (d) Capital Balances $ 31,000 $ 22,000 $ $ 45,000 $ 42,000 104,000 $ 92,000 $ 128,000 42,000 $ $ 122,000 $ $ 69,500 $ 79,500 x (e) Capital Balances 22,000 $ 12,800 34,920 $ 32,800 84,100 $ 106,200 $ 112,800