P$12\mathrm{.}8$A $($LO$5)$ AP At April $30$ of the current year, partners' capital balances and the profit$-$ and loss$-$sharing ratio in SOS Enterprises are as follows:

$\backslash$table$[[$Partner$,$Capital Balance,,Profit and Loss Ratio$],[$R$.$ Short,$$38,000,,3],[$K$.$ Osborne,$$19,000,,2],[$W$.$ Sanga,$$59,000,,4]]$

On May $1,$ SOSO Company is formed by admitting N$.$ Osvald to the firm as a partner.

Instructions

Journalize the admission of Osvald under each of the following independent assumptions:

a$.$ Osvald purchases $50\%$ of Sanga's ownership interest by paying Sanga $$31,000$ cash from personal funds.

b$.$ Osvald invests $$68,000$ cash in the partnership for a $40\%$ ownership interest.

c$.$ Osvald invests $$41,000$ in the partnership for a $20\%$ ownership interest.

d$.$ Osvald invests $$29,000$ in the partnership for a $20\%$ ownership interest.

Taking It Further Why would a new partner be willing to pay a bonus to the existing partners in order to join a partnership? Give an example of a situation where this might happen.

Record withdrawal of partner.