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. Debras capital is $190,000, Merinas capital is $152,000, and they share income in a ratio of 3:2, respectively.

1.

Record Waynes admission for each of the following independent situations:

Wayne directly purchases half of Merinas investment in the partnership for $96,000

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

Record Wayne's investment, for one-third interest; no goodwill or bonus.

3. Wayne invests $100,000 for a 25 percent interest. Goodwill is to be recorded.

Record Wayne's investment of $100,000 for a one-fourth interest; goodwill.

4. Debra and Merina agree that some of the inventory is obsolete.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 25 percent interest.

Record the write-down of inventory.

5. Wayne directly purchases a 25 percent interest by paying Debra $81,000 and Merina $53,000. The land account is increased before Wayne is admitted.

Record the revaluation of land.

6. Wayne invests $63,000 for a 20 percent interest in the total capital of $405,000.

Record Wayne's investment of $63,000 for the one-fifth interest given that the total capital is $405,000.

7. Wayne invests $103,000 for a 20 percent interest. Goodwill is to be recorded.

Record the entry for goodwill.