Following is the current balance sheet for a local partnership of doctors:

Cash and current assets $ Liabilities $

Land A capital

Building and equipment net B capital

C capital

D capital

$ $

Profits and losses are split according to the following percentages: A; B; C and D

Required:

Prepare the necessary journal entries, for each of the following independent situations.

a E contributes $ in cash to the business to receive a percent interest in the partnership. Goodwill is to be recorded.

b E contributes $ in cash to the business to receive a percent interest in the partnership. No goodwill or other asset revaluation is to be recorded.

c E pays $ in cash directly to each of the partners to purchase a percent interest in the partnership. No goodwill or other asset revaluation is to be recorded.

d C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. on an excel sheet

Answer rating: 100% (QA)

Here are the journal entries for the situations described a E contributes 36... View the full answer