The DEF Partnership has the following capital balances: Davis of $50,000, Ellen of $42,000, and Farmer of $18,000. They share income and loss 3:3:2. They decide to admit Garner as a new partner.

a. Journalize the admission of Garner if he purchases 50% Farmer's ownership by paying Farmer $30,000 in cash.

b. Journalize the admission of Garner if he purchases 1/3 of Ellen's ownership ) by paying Ellen $25,000 in cash.

c. Garner invests $50,000 for a 25% interest and bonuses are given to the old partners.

d. Garner invests $35,000 for a 40% interest and bonus is given to the new partner.

Homework 12-2 The DEF Partnership has the following capital balances: Davis of $50,000; Ellen of $42,000, and Farmer of $18,000. They share income and loss 3:3:2. They decide to admit Garner as a new partner. a. Journalize the admission of Garner if he purchases 50% Farmer's ownership by paying Farmer $30,000 in cash. b. Journalize the admission of Garner if he purchases 1/3 of Ellen's ownership by paying Ellen $25,000 in cash. c. Garner invests $50,000 for a 25% interest and bonuses are given to the old partners. Davis, Capital Ellen, Capital Farmer, Capital Investment by Garner Total Capital times 25%= Garner Capital Purchased DR CR d. Garner invests $35,000 for a 40% interest and bonus is given to the new partner. Davis, Capital Ellen, Capital Farmer, Capital Investment by Garner Total Capital times 40%= Garner Capital Purchased DR CR