Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hi, i have solved required a and it is correct, but i am completly stumped on required b. nome if the numbers i have as

hi, i have solved required a and it is correct, but i am completly stumped on required b. nome if the numbers i have as a part if required b are currently correct image text in transcribed
image text in transcribed
image text in transcribed
The following is the current balance sheet for a local partnership of doctors: The following questions represent independent situations: Required: a. E is going to invest enough money in this partnership to receive a 20 percent interest. No goodwill or bonus is to be recorded. How much should E invest? b. E contributes $50,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A,30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances? c. E contributes $38,000 in cash to the business to recelve a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances? d. E contributes $72,000 in cash to the business to recelve a 20 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 B makes this investment, what are the individual capital balances? e. Cretires from the partnership and, as per the original partnership agreement, is to recelve cash equal to 130 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the withdrawal, what are the individual capltal balances of the remaining partnors? Complete this question by entering your answers in the tabs below. E is going to invest enough money in this partnership to receive a 20 percent interest. No goodwill or bonus is to be recorded. How much should E invest? b. E contributes $50,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances? c. E contributes $38,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances? d. E contributes $72,000 in cash to the business to recelve a 20 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? e. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 130 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All parthers share profits and losses equally. After the withdrawal, what are the individual capital balances of the remaining partners

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

Step: 3

blur-text-image

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

Computer Aided Fraud Prevention And Detection A Step By Step Guide

Authors: David Coderre

1st Edition

0470392436, 978-0470392430

More Books

Students also viewed these Accounting questions

Question

When would noncontrolling interest be presented on a balance sheet?

Answered: 1 week ago

Question

13. Identify the refusal of the return in Dances with Wolves.

Answered: 1 week ago

Question

10. Describe the relationship between communication and power.

Answered: 1 week ago