Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debra’s capital is $200,000, Merina’s capital is $160,000, and they share income in a ratio of 3:2, respectively.

Required

Record Wayne’s admission for each of the following independent situations:

a. Wayne directly purchases half of Merina’s investment in the partnership for $90,000.

b. Wayne invests the amount needed to give him a one-third interest in the capital of the partnership if no goodwill or bonus is recorded.

c. Wayne invests $110,000 for a one-fourth interest. Goodwill is to be recorded.

d. Debra and Merina agree that some of the inventory is obsolete. The inventory account is decreased before Wayne is admitted. Wayne invests $100,000 for a one-fourth interest.

e. Wayne invests $110,000 cash to the partnership for 25% capital interest in the partnership. If the bonus method is to be used, “Wayne, capital” account should be credited by: 

f. Same information as in “e”. If the goodwill method is to be used, “Wayne, capital” account should be credited by: 

g. Wayne invests $80,000 cash to the partnership for 20% capital interest in the partnership. If the revaluation method is to be used to adjust inventory, “Debra, capital”