Exercise 2B - Admitting a New Partner The AlphabetSoup Partnership has three existing partners with capital accounts and profit splits as follows: Partner Capital Balance Profit Interest A $1,000,000 B 700,000 C 300,000 $2,000,000 25% 40% 35% 100% Alphabet Soup somnino a new partner, under Pach of te following scenarios determine how the is the entry is booked by entering the proper dollar amount in each gray-shaded cell. When correct, the cells will change color to a light green. Scenario 1: New Partner D contributes $2,000,000 for a 50% capital share of the firm. Account Debit Assets (Contributed by D) Capital - D Credit Scenario 2: New Partner D contributes $3,000,000 for a 50% capital share of the firm. The firm uses the bonus method of accounting for new partners and the bonus is applied to the existing partners. Account Assets (Contributed by D) Debit $3,000,000 Credit Capital - A $125,000 Capital - B $200,000 $175,000 $2,500,000 Capital - C Capital - D Scenario 3: New Partner D contributes $3,000,000 for a 50% capital share of the firm. The firm uses the goodwill method, and any excess over FMV is attributable to existing goodwill. Account D Assets (contributed by D) Goodwill Capital - A Capital-B C Capital - C Capital - D Scenario 4: New Partner D contributes $1,000,000 for 50% share of the firm. The firm uses the bonus method, and any bonus is attributable to the new partner. Account D Assets (contributed by D) Capital - A Capital - B Capital - C Capital - D C