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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)
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
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