The ABCD Partnership has the following balance sheet at January 1, 2017, prior to the admission of new partner, Eden.

Cash and current assets ................................$39,000

Liabilities .......................................................$52,000

Land ............................................................$234,000

Total: ...........................................................$403,000

Building and equipment ...............................$130,000

Adams, Capital .............................................$26,000

Barnes, Capital .............................................$52,000

Cordas, Capital ...........................................$117,000

Davis, Capital .............................................$156,000

Total: ..........................................................$403,000

Requirements:

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?