1. Eden contributes $49,000 into the partnership for a 25% interest.  The four original partners share profits and losses equally.  Using the bonus method, determine the balances for each of the five partners after Eden joins the partnership.

2. Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership.  Goodwill was to be recorded.  The four original partners shared all profits and losses equally.  After Eden made his investment, what were the individual capital balances?

3. Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners. No goodwill is to be recorded.  Profits and losses have previously been split according to the following percentages: Adams, 15%, Barnes, 35%, Cordas, 30%, and Davis, 20%.  After Eden made his investment, what were the individual capital balances?

4. Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners. Goodwill is to be recorded.  Profits and losses have previously been split according to the following percentages: Adams, 15%; Barnes, 35%; Cordas, 30%; and Davis, 20%.  After Eden made his investment, what were the individual capital balances?
 

Transcribed Image Text:

Required information The ABCD Partnership has the following balance sheet at January 1, 2017, prior to the admission of new partner, Eden. 52, 000 Cash and current assets Land $ 39,000 234, 000 130, 000 Liabilities Adams, capital Barnes, capital Building and equipment 26, 000 52, 000 117,000 Cordas, capital Davis, capital Total 156, 000 Total $403, 000 $ 403,000 Required information The ABCD Partnership has the following balance sheet at January 1, 2017, prior to the admission of new partner, Eden. 52, 000 Cash and current assets Land $ 39,000 234, 000 130, 000 Liabilities Adams, capital Barnes, capital Building and equipment 26, 000 52, 000 117,000 Cordas, capital Davis, capital Total 156, 000 Total $403, 000 $ 403,000

Answer rating: 100% (QA)

Answer Adam 26000 Barnes 52000 Cordas 117000 Davis 156000 Eden 87750 ... View the full answer