1. Shirley, Curley, and Burley are partners sharing profits and losses 40/40/20 respectively. Their capital balances are:

Shirley $300,000 Curley $300,000 Burley $175,000

With the approval of the three partners, and assuming that the partnership net assets are worth $775,000, Shirley sells 25% of his ownership to Furley for $80,000 while Burley sells 30% of his ownership to Furley for $70,000. The transactions are personal and no cash comes into the business.

1. Record the admission of Furley into the partnership.

2. Assume instead that Furley joins the partnership by contributing $320,000. He is to receive a 25% ownership interest. Record the entry of Furley using the bonus method.

3. Assume instead that Furley contributes $350,000 but is to receive only 20% ownership interest. Record the admission of Furley using the goodwill method.

4. In the first year after Furley was admitted under the conditions of c above, a loss of $290,000 occurred An agreement was made as to how to share profits but not losses, whereby Burley receives a $40,000 salary, all partners receive 5% of their beginning capital balances, and the remainder is shared equally. Prepare a schedule showing how the loss should be share