Problem IV

At April $30,$ partners' capital balances in DES Company are: Dexter $$44,000.$ Emley $$26,000,$ and Sigle $$24,000.$ The income$-$sharing ratios are $5$:$3$:$2,$ respectively. On May $1,$ the DESW Company is formed by admitting Watson to the firm as a partner. Instructions

$($a$)$ Journalize the admission of Watson under each of the following independent assumptions.

$(1)$ Watson purchases $50\%$ of Sigle's ownership interest by paying Sigle $$9,000$ in cash.

$(2)$ Watson purchases $50\%$ of Emley's ownership interest by paying Emley $$15,000$ in cash.

$(3)$ Watson invests $$46,000$ cash in the partnership for a $40\%$ ownership interest that includes a bonus to the new partner.

$(4)$ Watson invests $$30,000$ in the partnership for a $20\%$ ownership interest, and bonuses are given to the old partners.

$($b$)$ Sigle's capital balance is $$25,500$ after admitting Watson to the partnership by investment. If Sigle's ownership interest is $15\%$ of total partnership capital, what were $(1)$ Watson's cash investment and $(2)$ the total bonus to the old partners?