Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Existing partners, their capital balance, and their profit/loss sharing ratio. Allow for a maximum of 5 existing partners (call them A, B, C. IX E)

image text in transcribed

Existing partners, their capital balance, and their profit/loss sharing ratio. Allow for a maximum of 5 existing partners (call them A, B, C. IX E) and use a ratio (rather than percent) to express the P/L ratio. Example - partners A, B. and C share P/L (1:3:4) rather than 12.5%, 37.5%, 50%. Assume that the input will be done alphabetical with the partners (A, then B, then C. then D. then E) using a 0 for both the balance and P/E ratio if the partner does not exist. Amount new partner will contribute and the percentage ownership in the new partnership. The percentage ownership should be expressed as a percent in this case. Call the new partner N. For each of the possible methods (BONUS, GOODWILL), show: Whether the "Bonus/Goodwill" goes to the "OLD" partners, the "New " partner, or "None". The amount of the bonus/good will. The journal entry to record the acceptance of the new partner into the partnership. Make 1 compound entry for each method. Use 4 columns to produce the entry (a dr account, a cr account, a dr amount, a cr amount), and leave " middot blank" where nothing is needed (for both account and amount). The resulting balance of each of the partners' capital balance in the new partnership. Use the following (taken from the example in the book) to test your program: Current partnership has two partners. A and B, with capital balances of $80,000 and $20,000. The partners share profits/losses in the ratio of 3:2. A. N will contribute $20.000 to the partnership for a 10% interest. B. N will contribute $20.000 to the partnership for a 20% interest

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions