A partnership of attorneys in the St$.$ Louls, Missourl, area has the following balance sheet accounts as of January $1,2024$ :

According to the articles of partnership, Athos is to recelve an allocation of $50$ percent of all partnership profits and losses, while

Porthos recelves $30$ percent, and Aramis, $20$ percent. The book value of each asset and IIability should be considered an accurate

representation of falr value.

For each of the following $/$ndependent situations, prepare the journal entry or entrles to be recorded by the partnership.

Required:

a$.$ Porthos, with permission of the other partners, decides to sell half of his partnership interest to D'Artagnan for $$70,000$ in cash. No

asset revaluation or goodwill is to be recorded by the partnership.

b$.$ All three of the present partners agree to sell $10$ percent of each partnership Interest to D'Artagnan for a total cash payment of

$$32,000.$ Each partner recelves a negotlated portion of this amount. Goodwill is recorded as a result of the transaction.

c$.$ D'Artagnan is allowed to become a partner with a $10$ percent ownership Interest by contributing $$40,000$ in cash directly Into the

business. The bonus method is used to record this admission.

d$.$ Use the same facts as In requirement part $($c$)$ except that the entrance Into the partnership is recorded by the goodwill method.

e$.$ D'Artagnan is allowed to become a partner with a $15$ percent ownership interest by contributing $$42,000$ in cash directly to the

business. The goodwill method is used to record this transaction.

f$.$ Aramis decides to retire and leave the partnership. An Independent appralsal of the business and its assets Indicates a current falr

value of $$366,000.$ Goodwill is to be recorded. Aramis will then be glven the exact amount of cash that will close out his capital

account.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

D'Artagnan is allowed to become a partner with a $15$ percent ownership interest by contributing $$42,000$ in cash directly to

the business. The goodwill method is used to record this transaction.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

intermediate calculations. Round the final answers to nearest dollar amounts.

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