At April 30 of the current year, partners' capital balances and the profit- and loss-sharing ratio in SOS Enterprises are as follows:

On May 1, the 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 W. Sanga's ownership interest by paying W. 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.

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Capital Balance $38,000 $19,000 $59,000 Profit and Loss Ratio Partner R. Short K. Osborne W. Sanga