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Need help. Need to do each one to find acccount balances for each partner according to what haapens. Brenda, Clinton, Brad, and Linda have the
Need help.
Need to do each one to find acccount balances for each partner according to what haapens.
Brenda, Clinton, Brad, and Linda have the following partnership business: Assets Cash Current assets Land Building and Equip't $45,000 20,000 205,000 110,000 Liabilities and equities Liabilities $30,000 Brenda. Capital 50,000 Clinton, Capital 70,000 Brad, Capital 90,000 Linda, Capital 140,000 Total Liab, and Eq's $380,000 Total assets $380,000 The partners share profits and losses equally. Provide the partners' ending capital balances in each of the following independent situations. $70,000 a. Lee is added to the partnership after contributing to the business. No goodwill or bonus is recorded. b. Lee contributes $100,000 in cash to the business and receives a 20% interest in the partnership. Lee $100,000 investment is considered 20% of the new business's value, so goodwill may need to be recorded. (Eldridge's capital balance will be exactly $100,000.) C. Lee is added to the partnership and receives 20% of each partner's interest in the business after paying $45.000 directly to each of the four partners. No goodwill is recorded. d. Lee retires and has been paid 110% of her capital balance according to the terms of the original partnership agreement. The bonus method is used Step by Step Solution
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