accounting 239221

Each of the situations described in questions 27-29 are independent situations

A partnership began its first year with the following capital balances:

Adrian, capital ………26,000

Brian, capital…….52,000

Charles, capital……..117,000

David, capital………156,000

Edgar contributes $49,000 into the partnership for a 25% interest. The four original partners share profits and losses equally. Using the bonus method, the capital balance for Adrian after Edgar joins the partnership is Answer

13,250
39,250
12,750
26,000
51,000

5 points

Question 28

  1. A partnership began its first year with the following capital balances:
    Adrian, capital ………26,000
    Brian, capital…………52,000
    Charles, capital……..117,000
    David, capital………156,000
    Edgar contributed $124,000 in cash into the partnership to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Edgar made his investment, Adrian’s capital balance is Answer
    36,250
    62,250
    26,000
    88,250
    36,000

5 points

Question 29

A partnership began its first year with the following capital balances:

Adrian, capital ………26,000

Brian, capital………….52,000

Charles, capital……..117,000

David, capital………..156,000

Edgar acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: Adrian, 15%, Brian, 35%, Charles, 30% and David, 20%. After Edgar made his investment, what was Charles’ capital balance?

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