Check my work The following is the current balance sheet for a local partnership of doctors: Cash and current sets Land bullding and equipment (net) 57.000 206,000 167,000 Liabilities A, capital , capital C, capital D. capital Totals 64,000 44.000 54,000 114,000 144.000 $430,000 Total $430,000 The following questions represent independent situations a. E is going to invest enough money in this partnership to receive a 25 percent interest. No goodwill or bonus is to be recorded. How much should invest? b. E contributes $50,000 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. 10 percentC40 percent and D. 20 percent. After E makes this investment, what are the individual capital balances? c. E contributes $48,000 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? d. E contributes $62,000 in cash to the business to receive a 18 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 balonces? e. Cretires from the partnership and, as per the original partnership agreement is to receive cash equal to 112 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? Reg A Req B to E b. E contributes $50,000 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? c. E contributes $48,000 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? d. E contributes $62,000 in cash to the business to receive a 18 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? e. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 112 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? Show less Individuals (b) Capital Balances (c) Capital Balances (d) Capital Balances Capital Balances A B D E
