&

Dividing Partnership Income Tyler Hawes and Piper Albright formed a partnership, investing $65,000 and $195,000, respectively. Determine their participation in the year's net income of $300,000 under each of the following independent assumptions: a. No agreement concerning division of net income. b. Divided in the ratio of original capital investment. c. Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3. d. Salary allowances of $34,000 and $49,000, respectively, and the balance divided equally. e. Allowance of interest at the rate of 5% on original investments, salary allowances of $34,000 and $49,000, respectively, and the remainder divided equally. Hawes Albright (a) $ $ (b) $ $ (c) $ $ (d) $ $ (e) $ $ Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $196,000 and $141,200, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one- fifth of Henry's interest for $45,100 and one-fourth of Chou's interest for $31,100. Clarke contributes $47,800 cash to the partnership, for which she is to receive an ownership equity of $47,800. al. Journalize the entry to record the admission of Gilbert. For a compound transaction, if an amount box does not require an entry, leave it blank. Trent Henry, Capital Tim Chou, Capital Trent Henry, Capital a 2. Journalize the entry to record the admission of Clarke. Cash 47,800 Becky Clarke, Capital 47,800 b. What are the capital balances of each partner after the admission of the new partners? Partner Capital Balance Trent Henry $ Tim Chou $ LeAnne Gilbert $ Becky Clarke $ 47,800