Beard,Tanner,Williams Are Operating as a Partnership

question 29

Essay

Beard,Tanner,Williams are operating as a partnership.The capital account balances at December 31,2010 are $254,000,$195,000 and $286,000 respectively.Record the entries for the following independent situations.
A.The partners vote to admit Sturges.She is going to invest $150,000 for a 15% interest in the partnership.Profit and losses are split equally between the existing partners.
B.Sturges agrees to buy 50% of Williams interest by paying him $150,000 directly.
C.The partners need new ideas and agree to give Sturges a 20% interest in exchange for $150,000.Profits and losses are shared equally between the existing partners.
D.Williams wants to retire and is willing to leave the partnership in exchange for $281,000.Profits and losses were shared on the ratio of 2:3:5.

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Definitions:

Marketing Strategy

A comprehensive plan formulated by a business to achieve specific marketing goals and objectives.

New Customers

Individuals or organizations that have not previously purchased from a business, representing an opportunity for growth and expansion.

Unrelated Products

Products that have no significant connection or complementarity in use, production, or marketing to each other.

Existing Goods

Products that have already been manufactured and are available for sale or distribution.