Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 260,000 Adams 230,000 Fergie 220,000 Gomez 210,000

The E.N.D. partnership has the following capital balances as of the end of the current year:

Pineda $ 260,000
Adams 230,000
Fergie 220,000
Gomez 210,000
Total capital $ 920,000

Answer each of the following independent questions:

  1. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $254,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?

  2. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $340,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)

The E.N.D. partnership has the following capital balances as of the end of the current year:

Pineda $ 260,000
Adams 230,000
Fergie 220,000
Gomez 210,000
Total capital $ 920,000

Answer each of the following independent questions:

  1. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $254,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?

  2. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $340,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)

image text in transcribed

Capital Balance a. Pineda Adams Gomez Adams Fergie Gomez

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance: Theory And Practice

Authors: Eddie McLaney

6th Edition

9780273673569

More Books

Students also viewed these Accounting questions

Question

Contrast intelligence and emotional intelligence.

Answered: 1 week ago

Question

Briefly describe four guides to ethical decision-making

Answered: 1 week ago