A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter? b. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter? Capital Balances a. Nixon Hoover Polk Grant b. Nixon Hoover Polk Grant On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $48,000, $75,000 and $78,000, respectively. Over the next three years, the business reported net income and (loss) as follows 2017 2018 2019 $ 88,000 60,000 (43,000) During this period, each partner withdrew cash of $20,000 per year. Krause invested an additional $5,000 in cash on February 9 2018 At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year annual salary allowance of $10,800 per year the initial allocations to the partners, the balance will be allocated: Angela, 30 percent Diaz, 45 percent, and Krause, 25 percent. . Because of prior work experience, Angela is entitled to an annual salary allowance of $14,500 per year and Diaz is entitled to an . Any remaining profit will be split as follows: Angela, 20 percent, Diaz, 35 percent, and Krause, 45 percent. If a net loss remains after Determine the ending capital balance for each partner as of the end of each of these three years. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) 2017 2018 2019 Angela's ending balance Diaz's ending balance Krause's ending balance A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter? b. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter? Capital Balances a. Nixon Hoover Polk Grant b. Nixon Hoover Polk Grant On January 1, 2017, the dental partnership of Angela, Diaz, and Krause was formed when the partners contributed $48,000, $75,000 and $78,000, respectively. Over the next three years, the business reported net income and (loss) as follows 2017 2018 2019 $ 88,000 60,000 (43,000) During this period, each partner withdrew cash of $20,000 per year. Krause invested an additional $5,000 in cash on February 9 2018 At the time that the partnership was created, the three partners agreed to allocate all profits and losses according to a specified plan written as follows Each partner is entitled to interest computed at the rate of 10 percent per year based on the individual capital balances at the beginning of that year annual salary allowance of $10,800 per year the initial allocations to the partners, the balance will be allocated: Angela, 30 percent Diaz, 45 percent, and Krause, 25 percent. . Because of prior work experience, Angela is entitled to an annual salary allowance of $14,500 per year and Diaz is entitled to an . Any remaining profit will be split as follows: Angela, 20 percent, Diaz, 35 percent, and Krause, 45 percent. If a net loss remains after Determine the ending capital balance for each partner as of the end of each of these three years. (Do not round intermediate calculations. Round your final answers to the nearest dollar amount.) 2017 2018 2019 Angela's ending balance Diaz's ending balance Krause's ending balance
