Hood and Rowe began a partnership on January 1, 2008. Hood invests $50,000 cash and inventory costing $20,000 but with a current market value of $15,000. Rowe contributes computers and software with a book value of $70,000 and a fair value of $61,000. The partnership also assumes a $20,000 note payable owed in connection with this equipment. The partners agree to begin operations with equal capital balances. The articles of partnership also provide that at each year-end, profits and losses are allocated as follows: 1. Both partners are entitled to interest equal to 10 percent of the beginning capital balance for the year without regard for the income or drawings of that year. 2. Any remaining profit or loss is divided 60 percent to Hood and 40 percent to Rowe. 3. Each partner is allowed to withdraw $500 per month in cash from the business. 4. Hood and Rowe are allowed salaries of $12,000 and $10,000, respectively. For 2008, the partnership reported income of $44,000. In 2009, the partnership reported income of $55,000. Pate is allowed to join the partnership on January 1, 2009. The new partner invests $70,000 directly into the business for a 35 percent interest in the partnership property. The revised partnership agreement still allows for the salaries to Hood and Rowe, and the 10 percent interest to Hood, Rowe, and Pate. Pate is allowed a salary of $8.000 annually. All remaining profits and losses are now split 40 percent to Hood and Rowe and 20 percent to Pate. Pate is also entitled to $500 per month in drawings. Hood chooses to withdraw from the partnership a few years later. After negotiations, all partners agree that Hood should be paid a $150,000 settlement. The capital balances on that date were as follows: Hood Rowe Pate $120,000 $100,000 $ 90,000 Assuming that this partnership uses the goodwill method exclusively: 1. Record the journal entries for the transactions occurring on January 1, 2008. 2. Calculate partners balances on December 31, 2008.(show your calculations) 3. Record the admission of Pate to the partnership on January 1, 2009. 4. Record the closing entries for the partnership for the year ending December 31, 2009 5. Prepare the journal entries to record the withdrawal of Hood from the partnership. 6. Show your calculations for goodwill. Hood and Rowe began a partnership on January 1, 2008. Hood invests $50,000 cash and inventory costing $20,000 but with a current market value of $15,000. Rowe contributes computers and software with a book value of $70,000 and a fair value of $61,000. The partnership also assumes a $20,000 note payable owed in connection with this equipment. The partners agree to begin operations with equal capital balances. The articles of partnership also provide that at each year-end, profits and losses are allocated as follows: 1. Both partners are entitled to interest equal to 10 percent of the beginning capital balance for the year without regard for the income or drawings of that year. 2. Any remaining profit or loss is divided 60 percent to Hood and 40 percent to Rowe. 3. Each partner is allowed to withdraw $500 per month in cash from the business. 4. Hood and Rowe are allowed salaries of $12,000 and $10,000, respectively. For 2008, the partnership reported income of $44,000. In 2009, the partnership reported income of $55,000. Pate is allowed to join the partnership on January 1, 2009. The new partner invests $70,000 directly into the business for a 35 percent interest in the partnership property. The revised partnership agreement still allows for the salaries to Hood and Rowe, and the 10 percent interest to Hood, Rowe, and Pate. Pate is allowed a salary of $8.000 annually. All remaining profits and losses are now split 40 percent to Hood and Rowe and 20 percent to Pate. Pate is also entitled to $500 per month in drawings. Hood chooses to withdraw from the partnership a few years later. After negotiations, all partners agree that Hood should be paid a $150,000 settlement. The capital balances on that date were as follows: Hood Rowe Pate $120,000 $100,000 $ 90,000 Assuming that this partnership uses the goodwill method exclusively: 1. Record the journal entries for the transactions occurring on January 1, 2008. 2. Calculate partners balances on December 31, 2008.(show your calculations) 3. Record the admission of Pate to the partnership on January 1, 2009. 4. Record the closing entries for the partnership for the year ending December 31, 2009 5. Prepare the journal entries to record the withdrawal of Hood from the partnership. 6. Show your calculations for goodwill