Question
2) a) Laura and Sally are partners who share profits 70% and 30%. Their capital balances were both $55,000 before Karen was admitted to the
2) a) Laura and Sally are partners who share profits 70% and 30%. Their capital balances were both $55,000 before Karen was admitted to the partnership. Karen paid $70,000 each to Laura and Sally for purchase of a 33% interest in the partnership. After her admission to the partnership,
Karen will have a capital balance of _________. [12]
b) Jim and Mary are partners who share profits 70% and 30%. Their capital balances were both $80,000 before Betty was admitted to the partnership. Betty contributed $100,000 in cash to the partnership for a 20% interest. After Betty is admitted to the partnership,
Jim will have a capital balance of _________.
c) Jerry and Sundar are partners who share profits 40% and 60%. Before Bill was admitted to the partnership, Jerry's and Sundar's capital balances were $85,000 and $60,000, respectively. Bill contributed $95,000 in cash to the partnership for a one-half interest. After Bill is admitted to the partnership,
Sundar will have a capital balance of $____________.
d) Rick, Sam, and Yeshiv are partners who share profits 50%, 25%, and 25%. Their capital balances were $78,000, $52,000, and $30,000, respectively, before Yeshiv's retirement. Rick and Sam each paid Yeshiv $20,000 from their personal assets to buy half his interest. After Yeshiv has withdrawn,
Rick will have a capital balance of $____________.
e) Matt, Nick, and Scott are partners who share profits 30%, 30%, and 40%. Their capital balances were $105,000, $70,000, and $35,000, respectively, before Scott's retirement. Scott was paid $55,000 from partnership assets to buy his interest. After Scott has withdrawn,
Matt will have a capital balance of $____________.
f) Gina, Jane, and Ping are partners who share profits 40%, 20%, and 40%. Their capital balances were $35,000, $15,000, and $10,000, respectively, before Ping's retirement. Ping was paid $7,000 from partnership assets to buy her interest. After Ping has withdrawn,
Gina will have a capital balance of $____________.
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