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Following is the current balance sheet for a local partnership of doctors: Cash and current assets Land Building and equipment (net) S 44,00D Liabilities 154,000
Following is the current balance sheet for a local partnership of doctors: Cash and current assets Land Building and equipment (net) S 44,00D Liabilities 154,000 A, capital 142,000 B, capital D. Capital $ 46,ODD 28,000 46,000 98.000 126,000 C. Capital Totals S 310.000 Totals $ 310,000 The following questions represent independent situations: a. E is going to invest enough money in this partnership to receive a 25 percent interest. No goodwill or bonus is to be recorded. How much should Einvest? E investment b. E contributes $36,000 in cash to the business to receive a 10 percent interest in the partnership Goodwill is to be recorded. Prolits and losses have previously been split according to the following A; , investment, what are the individual capital balances? Individuals Capital Balances B E c. E contributes $50,000 in cash to the business to receive a 20 percent interest in the partnership Goodwill is to be recorded. The four this investment, what are the individual anal partners share all profits and losses equally. After Emakes al capital Individuals Capital Balances B D E d. E contributes $44,000 in cash to the business to receive a 15 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A 10 percent B. 30 percent; C. 20 percent; and D. 40 percent. After E makes this investment, what are the individual capital balances? Individuals Capital Balances A B D e. Cretires from the partnership and, as per the original partnership agreement, is to receive cash equal to 140 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partriers share profits and losses equally. After the drawal, what are the individual capital balances of the remaining partnera? Individuals Capital Balances A B
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