2. 3 ALT-PARTNERSHIP CHANGES There are 5 exercises in this set. Which exercise would you like? 4 1 5 6 Porter and Abbot are partners in the PA Partnership. Porter has a capital balance of $60,000 and Abbot has a capital balance of $80,000. Porter and Abbot split profits as follows: 50% to Porter and 50% to Abbot. 7 8 9 10 11 12 13 A new partner, Roland, enters the partnership with an investment of $40,000 for a 20% interest in the partnership. Grade 1. What is the new capital total for the partnership? 0 14 15 16 2. What amount of capital will Roland receive? 0 17 18 3. What is the amount of the bonus? 0 19 20 21 CREDIT 22 23 4. Show the journal entry to admit Roland. JOURNAL DEBIT 1 CASH 2 PORTER CAPITAL 3 ABBOT CAPITAL 4 ROLAND CAPITAL 24 In balance 25 26 27 28 29 0 -1 2 3 4 Partnership Changes