3 Problem 1- Admitting new partner 4 Billy was accepted as new partner by contributing 5000 with Partners' Capital and Profit/loss ratio 5 2:2:1. Brandon and Nick agreed to withdraw their investment to make their capital proportionate 6 after the outstanding salaries were equally paid. 7 B&N Partnership 8 Assets Liability and Owner's Equity 9 Bank Cash $8.928 Account Payable-Indomarco_$13.680 10 Land $24.000 Account Payable-Computer $1.458 11 Inventory Computer $9.120 Interest Payable $300 12 Building $9.000 Bank Loan $12.000 13 Accumulated Depreciation-Building -$36 Salary Payable $960 14 Fixture/Furniture $3.000 Brandon Capital $14.040 15 Accumulated Depreciation-F/Furnitur $24 Nick Capital $12.924 16 Machine $1.380 17 Accumulated Depreciation-Machine -$6 18 19 a. Prepare the journal entries for the payment of salary, cash with drawls & admission of Billy 20 Salary Payable Computation for Bonus method 21 Brandon Capital Total Capital 22 Nick Capital Brandon and Nick capital 23 Cash Billy capital 24 Bonus deduct from Brandon 25 Cash Bonus adds to Nick 26 Billy Capital Bonus adds to Billy 27 28 b. Prepare the Statement of Financial Position after Billy had been admitted 29 B&N Partnership 30 Assets Liability and Owner's Equity 31 Bank Cash Account Payable-Indomarco 32 Land Account Payable-Computer 33 Inventory Computer Interest Payable 34 Building Bank Loan 35 Accumulated Depreciation-Building Total Liability 36 Fixture/Furniture Brandon Capital 37 Accumulated Depreciation-F/Furniture Nick Capital 38 Machine Billy Capital 39 Accumulated Depreciation-Machine Total Owners Equity 40 Total assets Total Liability & Owners Equity 11 42 c. Prepare the journal entries and the Capital section of the Partnership, if Bonus method 43 was recognized upon the admission of Billy (no cash withdrawl for Brandon and Nick) 44 Cash Brandon Capital 45 Billy Capital Nick Capital 46 Billy Capital 47 Brandon, Capital Total Owners Equity 48 Nick, Capital 49 Billy, Capital 50 51 52