,A,B, and C Have a Partnership

question 14

Essay

,A,B, and C have a partnership.Their capital balances are $100,000, $140,000, and $60,000 respectively.The agreed profit and loss ratios are 30/40/30.They are considering admitting a new partner D.The net assets of the partnership are worth $360,000.D is willingly to invest $60,000 plus assets with a book value of $24,000 and a fair market value of $40,000.
Instructions:
Provide journal entries assuming
1.D is receiving a 20% share of the new partnership with his investment.His admission is to be recorded using the bonus method
2.D is receiving a 20% share of the new partnership with his investment.His admission is to be recorded using the goodwill method.
1.D is receiving a 30% share of the new partnership with his investment.His admission is to be recorded using the bonus method.\
2.D is receiving a 25% share of the new partnership with his investment.His admission is to be recorded using the goodwill method.\

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Definitions:

Emotion-Focused

An approach emphasizing the recognition, understanding, and managing of one’s emotions as central to personal well-being and therapy.

Self-Organization

The process by which systems, naturally or artificially, structure themselves without external guidance to achieve a coordinated function or pattern.

Regulation

The process of controlling or managing certain behaviors or processes, often through guidelines, norms, or laws within a specific context.

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-client relationship, and the environmental and social contexts of a person's life.