P12.8A (LO 5) AP At April 30 of the current year, partners' capital balances and the profit- and loss-sharing ratio in SOS Enterprises are as follows:

Record admission of partner.

Partner		Capital Balance		Profit and Loss Ratio
R. Short		$38,000		3
K. Osborne		$19,000		2
W. Sanga		$59,000		4

On May 1, the SOSO Company is formed by admitting N. Osvald to the firm as a partner.

Instructions

Journalize the admission of Osvald under each of the following independent assumptions:

1. Osvald purchases 50% of W. Sanga's ownership interest by paying W. Sanga $31,000 cash from personal funds.
2. Osvald invests $68,000 cash in the partnership for a 40% ownership interest.
3. Osvald invests $41,000 in the partnership for a 20% ownership interest.
4. Osvald invests $29,000 in the partnership for a 20% ownership interest.

Taking It Further Why would a new partner be willing to pay a bonus to the existing partners in order to join a partnership? Give an example of a situation where this might happen.

P12.9A (LO 6) AP On December 31, the capital balances and profit and loss ratios in FJA Company are as follows:

Record withdrawal of partner.

Partner		Capital Balance		Profit and Loss Ratio
H. Fercho		$144,000		60%
P. Jiang		$59,300		30%
R. Antoni		$48,000		10%

Antoni is withdrawing from the partnership.

Instructions

Journalize the withdrawal of Antoni under each of the following independent assumptions:

1. Using personal funds, Jiang agrees to purchase Antoni's ownership interest for $58,000 cash.
2. Antoni is paid $58,000 from partnership assets.
3. Antoni is paid $38,200 from partnership assets.