1. The capital accounts of Susan Yu and Ben Hardy have balances of $100,000 and $90,000 respectively. Ken Mahl and Jeff Wood are admitted to the partnership. Mahl buys one-fourth of Yus interest for $27,500 and 0ne-fifth of Hardys interest for $20,000. Wood contributes $ 35,000 to the partnership, for which he is to receive an ownership equity of $35,000.

a. Journalize the entries to record the admission of (1) Mahl and (2) Wood.

b. What are the capital balances of each partner after the admission pf the new partners?

2. After the tangible assets have been adjusted to the current market prices, the capital accounts of Cecil Jacobs and Maria Esteban have balances of $61,000 and $59,000 respectively. Lee White is to be admitted to the partnership, contributing $45,000 cash to the partnership, for which she is to receive an ownership equity of $55,000. All partners share equally in income. a. Journalize the admission of white, who receive a bonus of $10,000. b. What are the capital balances of each partner after the admission pf the new partners

3. Glen Otis is to retire from the partnership of Otis and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Glen Otis $ 200,000; Tammie Sawyer, $125,000; and Joe Parrot, $140,000. They have shared net income and net losses in the ratio 3:2:2. The partners agree that the merchandise inventory should be increased by $15,00, and the allowance for doubtful accounts should be increased by $3,100. Otis agrees to accept a note of $150,000 in partial settlement of his ownership equity. the remainder of his claims is to be paid in cash. Sawyer and Parrot ate to share equally in the net income or net loss of the new partnership.

a. Journalize the entries to record (a) the adjustment of the assets to bring them into agreement with current market prices and (b) the withdrawal of Otis from the partnership.

4. Duncan, , and Ho are partners sharing income 3:2:1. After the firms loss from liquidation is distributed, the capital account balances were: Duncan, $15,000 Dr; Tribe, $50,000 Cr; and Ho, $40,000 Cr. If Duncan is personally bankrupt and unable to pay any of the $15,000, what will be the amount of cash received by Tribe and Ho upon liquidation?