advanced accounting help?
A partnership of attorneys in the St. Louis Missouri area has the following balance sheet accounts...
Assets... 320,000 Liabilities... 120,000
Athos Capital 80,000
Porthos capital 70,000
aramis capital 50,000
For each of the following independent situations prepare a journal entry or entries to be recorded by the partnership.
A) Porthos with permission of the other partners decides to sell half of his partnership interest to D"artagnan for 50,000 cash, no asset revaluation or goodwill is to be recorded by the partnership
B) all three of the present partners agree to sell 10 percent of each partnership interest to D'Artagnan for a total cash payment of 25,000. Each partner receives a negotiated portion of this amount Good will is recorded as a result of this transaction
C) D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing 30,000 cash directly into the business. The bonus method is used to record this admission.
D) using the same facts as in requirement (c) except that the entrance into the partnership is recorded by the goodwill method.
E) D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing 12,222 in cash directly to the business. The goodwill method is used to record this transaction.
F) Aramis decided to retire and leave the partnership. An independent appraisal of the business and its assets indicates a current fair value of 280,000 Good will is to be recorded. Aramis will then be given the exact amount of cash that will close out his capital.
