Boswell and Johnson form a partnership on May 1, 2016. Boswell contributes cash of $51,000; Johnson conveys title to the following properties to the partnership:

Following is the current balance sheet for a local partnership of doctors:

Cash and current assets	$	58,000	Liabilities	$	86,000
Land		280,000	A, capital		66,000
Building and equipment (net)		202,000	B, capital		86,000
			C, capital		136,000
			D, capital		166,000
Totals	$	540,000	Totals	$	540,000

The following questions represent independent situations:

1. E is going to invest enough money in this partnership to receive a 20 percent interest. No goodwill or bonus is to be recorded. How much should E invest?

2. E contributes $60,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances?

3. E contributes $60,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances?

4. E contributes $84,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital balances?

5. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 115 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the withdrawal, what are the individual capital balances of the remaining partners?

The partners agree to start their partnership with equal capital balances. No goodwill is to be recognized.

According to the articles of partnership written by the partners, profits and losses are allocated based on the following formula:

• Boswell receives a compensation allowance of $1,200 per month.
• All remaining profits and losses are split 70:30 to Johnson and Boswell, respectively.
• Each partner can make annual cash drawings of $4,000 beginning in 2017.

Net income of $11,500 is earned by the business during 2016.

Walpole is invited to join the partnership on January 1, 2017. Because of her business reputation and financial expertise, she is given a 40 percent interest for $55,000 cash. The bonus approach is used to record this investment, made directly to the business. The articles of partnership are amended to give Walpole a $2,000 compensation allowance per month and an annual cash drawing of $8,000. Remaining profits are now allocated:

Johnson	50	%
Boswell	10
Walpole	40

All drawings are taken by the partners during 2017. At year-end, the partnership reports an earned net income of $29,000.

On January 1, 2018, Pope (previously a partnership employee) is admitted into the partnership. Each partner transfers 10 percent to Pope, who makes the following payments directly to the partners:

Johnson	$	6,413
Boswell		7,650
Walpole		9,012

Once again, the articles of partnership must be amended to allow for the entrance of the new partner. This change entitles Pope to a compensation allowance of $1,000 per month and an annual drawing of $3,000. Profits and losses are now assigned as follows:

Johnson	40.0	%
Boswell	12.0
Walpole	38.0
Pope	10.0

For the year of 2018, the partnership earned a profit of $51,000, and each partner withdrew the allowed amount of cash.

Determine the capital balances for the individual partners as of the end of each year: 2016 through 2018.