Question $2$

On December $31,2003,$ Trudeau and Scheer has the following balance sheet:

Assets $$100,{000}_{?}$

Total Assets $$$100,{000}_{?}$

Liabilities $$50,000$

Capital:

Trudeau Capital $$30,000$

Scheer Capital ${20}_{,}{000}_{,}$$${50}_{,}{000}_{?}$

Liabilities and Equity $$100,{000}_{?}$

A third potential partner, Singh, has approached Trudeau with numerous proposals to secure his entrance into the partnership.

a$)$ Assume that Singh offered Trudeau $$7,000$ for $20\%$ of his capital. Also assume that the partnership's net assets are revalued due to Singh's entry into the partnership.

b$)$ Assume that Singh invested $$50,000$ for $80\%$ of Trudeau and Scheer's capital and that the bonus method was used.

c$)$ Assume that Singh invested $$32,000$ for $80\%$ of Trudeau and Scheer's capital and the asset revaluations method was used.

Required:

For each proposal prepare any necessary calculations, journal entries and a Balance Sheet following Singh's investment.