Problem 12-5A (50 minutes)\ Part 1\ a)\ Feb. 1 Benson, Capital 138,000\ North, Capital\ 138,000\ Record admission of North.\ b)\ Feb. 1 Benson, Capital 138,000\ Schmidt, Capital

,138,000

\ Record admission of Schmidt.\ c)\ Feb. 1 Benson, Capital\

138,000

\ Cash\ 138,000\ Record withdrawal of Benson with no bonus.\ d)\ Feb. 1 Benson, Capital\ Meir, Capital*\ Lau, Capital

^(*****)

\ Cash\ Record withdrawal of Benson with bonus.\

**($214,000-$138,000)\\\\times (3)/(8)\ ****($214,000-$138,000)\\\\times (5)/(8)

\ Problem 12-5A (Concluded)\ Part 2\ a)\ Feb. 1 Cash\ 200,000\ Rhodes, Capital*\ 200,000\ Record admission of Rhodes.\ *Supporting calculations\

$168,000+$138,000+$294,000=$600,000

\

($600,000+$200,000)\\\\times 25%=$200,000

\ Thus, no bonus is received or granted.\ b)\ Feb. 1 Cash\ Meir, Capital

($41,250**\\\\times (3)/(10))

\ Benson, Capital

($41,250^(**)\\\\times (2)/(10))

\ Lau, Capital

($41,250**\\\\times (5)/(10))

\ 138,000\ 28,500\ 47,500\ 214,000

b) Feb. 1 Benson, Capital 138,000 Schmidt, Capital 138,000 Record admission of Schmidt. c) Feb. 1 Benson, Capital 138,000 Cash 138,000 Record withdrawal of Benson with no bonus. Problem 12-5A (Concluded) Part 2 a) Feb. 1 Cash 200,000 Rhodes, Capital* 200,000 Record admission of Rhodes. *Supporting calculations $168,000+$138,000+$294,000=$600,000 ($600,000+$200,000)25%=$200,000 Thus, no bonus is received or granted. b) Feb. 1 Cash 145,000 12,375 8,250 20,625 Rhodes, Capital 186,250 Record Rhode's admission and bonus. Supporting calculations ($600,000+$145,000)25%=$186,250 $145,000$186,250=$(41,250) Thus, the new partner receives a bonus