Exercise 5. The old partnership between Nguyen and Guinn is either 1) admitting a new partner, or 2) an old partner is withdrawing, or 3) the partnership is liquidating. Therefore, the old partnership must be dissolved. If the old partnership agreement show a 4:6 division of Income and Gains/Losses respectively, what is the Journal Entry for the old partnership if, just before the disolution, this was the Balance Sheet after the net income was distributed for the period up to that date. Total Assets $260,000 $100,000, Guinn $80,000). Total Liabilities $80,000 Total Equity = $ 180,000 (Nguyen On Oct 1, 20x1, the date of the dissolution, it was determined that the Assets at FMV = $350,000 and the liabilities remained unchanged at $80,000. Show the Journal Entry, on Oct 1 which will make the Balance Sheet reflect what the partnership books should reflect just before the dissolution: (Hint: just make the debit to Assets). Exercise 6. Olde and Young are partners that share income on a 6:4 basis. They have capital balances of $100,000 and $70,000, respectively, after the dissolution of the old partnership in anticipation of admitting Tweener to the partnership. Prepare the Journal Entries required after the dissolution of the old partnership IF Tweener is admitted by (a) purchasing 50% of Olde's ownership from Olde for $ 75,000, (b) investing $90,000 cash for a 30% ownership interest, or (c) investing $50,000 cash for a 30% ownership interest. (Hint: Again, this will be so much easier if you have done the Handout). (a) (c) (b)