needs to be debits to goodwill in entires 2&3, and capital account balances.

part 2-4

P16-8 Page 539 See the power point for examples.) $_#1 is set up to complete. Check figures are: For #2 there will be a debit to goodwill of $25,000, For #3 there will be a debit to goodwill of $20,000, and for #4 there will be a credit to Dar capital of $117,000. 1 before after Capital account balances: Ann capital 75000 $ 75,000 0 Bob capital 100000 $ 100,000 1 Car Capital 125000 $ 62,500 2 Dar capital 0 $ 62,500 3 Total capital 300000 $ 300,000 4 5 Entry: 6 credit debit 62,500 Car capital Dar capital $ $ 62,500 8 9 1 2 Total capital 3 Dar Capt 4 dift 375000 93750 18750 Ann capital Bob capital Car Capital Dar capital Total capital before after 75000 $ 71,484 100000 $ 96,484 125000 $ 117,969 0 $ 93,750 300000 $ 379,687 6 7 Entry: 8 | debit 75,000 credit $ cash Dar capital Chirobi 9 $ 75.000 P 16-8 Recording new partner Investment - Various situations The capital accounts of the Ann, Bob, and Car partnership at December 31, 2016, together with profit- and loss-sharing ration, are as follows Ann (25%) $75.000 Bob (256) 100,000 Car (50%) 125,000 The partners agree to admit Dar into the partnership REQUIRED: Prepare the journal entry or entries to admit Dar into the partnership and calculate the partners capital balances immediately after his admission under each of the following independent assumption 1. Car sells half of her interest to Dar for S90,000, and the partners agree to admit Dar into the partnership 2. Dar imests S75,000 cash in the partnership for a 25 percent interest in the partnership capital and profit and partnership assets are revalued. 2. Dar imeats $80.000 cash in the partnership for a 20 percent interest in the capital and profits, and partner ship assets are revalued. 4. Dar invests $90,000 cash in the partnership for a 30 interest in the capital and profits, and partnership assets are not revalued