The partnership of Larry & Moe admits Curly as a partner on January 1, 2016. The...

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The partnership of Larry & Moe admits Curly as a partner on January 1, 2016. The partnership has these balances on December 31, 2015 (Click on the icon to view the balance sheet.) Larry's share of profits and losses is 80% and Moe receives 20%. Read the requirements OCE Data table Assets Cash Non-cash Assets Total Assets S Larry and Moe Balance Sheet December 31, 2015 Liabilities 16,000 Accounts Payable 105,000 $ 121,000 Partners' Equity Larry, Capital Moe, Capital Total Partners' Equity Total Liabilities and Partners' Equity 28,000 58,000 35,000 93,000 121,000 Requirements (Items 1, 2, and 3 are independent.) 1. Suppose Curly pays Moe $39,000 to buy out Moe. Larry approves Curly as a partner. a. Record the transfer of equity on the partnership books on January 1, 2016. b. Prepare the partnership balance sheet immediately after Curly is admitted as a partner. 2. Suppose Curly becomes a partner by contributing $41,000 cash on January 1, 2016, to acquire a one-fifth interest in the business. a. Compute Curly's capital balance, and determine whether there's any bonus. If so, who gets the bonus? b. Journalize Curty's contribution in the business. c. Prepare the partnership balance sheet mediately after Curly is admitted as a partner. Include the heading 3. Assume the Larry & Moe partnership liquidates by selling its non-cash assets for $81,000. Prepare the entries to liquidate the partnership on January 1, 2016. 14 I x The partnership of Larry & Moe admits Curly as a partner on January 1, 2016. The partnership has these balances on December 31, 2015 (Click on the icon to view the balance sheet.) Larry's share of profits and losses is 80% and Moe receives 20%. Read the requirements OCE Data table Assets Cash Non-cash Assets Total Assets S Larry and Moe Balance Sheet December 31, 2015 Liabilities 16,000 Accounts Payable 105,000 $ 121,000 Partners' Equity Larry, Capital Moe, Capital Total Partners' Equity Total Liabilities and Partners' Equity 28,000 58,000 35,000 93,000 121,000 Requirements (Items 1, 2, and 3 are independent.) 1. Suppose Curly pays Moe $39,000 to buy out Moe. Larry approves Curly as a partner. a. Record the transfer of equity on the partnership books on January 1, 2016. b. Prepare the partnership balance sheet immediately after Curly is admitted as a partner. 2. Suppose Curly becomes a partner by contributing $41,000 cash on January 1, 2016, to acquire a one-fifth interest in the business. a. Compute Curly's capital balance, and determine whether there's any bonus. If so, who gets the bonus? b. Journalize Curty's contribution in the business. c. Prepare the partnership balance sheet mediately after Curly is admitted as a partner. Include the heading 3. Assume the Larry & Moe partnership liquidates by selling its non-cash assets for $81,000. Prepare the entries to liquidate the partnership on January 1, 2016. 14 I x

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1 Curly Pays Moe 39000 to Buy Out Moe a Record the Transfer of Equity on January 1 2016 Moes Capital Account ... View the full answer