The statement of financial position of the PJ partnership on December 31, 2008, appears below.

Cash

Other assets

120,000

400.000

Liabilities

P-capital

J-capital

120,000

180,000

220.000

total asset

520,000

Total Liab. & capital

520,000

P and J share profits and losses in the ratio of 60:40. Each of the following questions is independent of the others.

1

Assume S invests 120,000 cash into the PJ partnership for a one-fourth interest in partnership capital

and profits, and the total firm capital of the PJS partnership is $520,000. What is the capital balance after S is admitted into the partnership?

2.

Assume that S invests 120,000 cash into the PJ partnership for a one-fifth interest in partnership capital and profits, and the total firm capital of the PJS partnership is $520,000. What is the capital balance of J after S is admitted into the partnership?

3.

Assume that S purchases one-fourth proportionate capital interest directly form P and J for a total of

$120,000, and the total capital of the PJS partnership is $400,000. What are the capital balances of P

and J after S is admitted into the partnership?

4.

Assume that S invests $280,000 cash into the PJ partnership for a 50% interest in partnership capital

and profits, and the total firm capital of the PJS partnership is $800,000. The capital balances of P, J, and S are?

5.

Assume that S invests $120,000 cash into the PJ partnership for a 20% interest in partnership capital

and profits, and the total firm capital of the PJS partnership is $600,000. The capital balances of P, J, and S are?