The ABCD Partnership Has the Following Balance Sheet at January

question 45

Essay

The ABCD Partnership has the following balance sheet at January 1, 2010, prior to the admission of new partner, Eden.

Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?

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Definitions:

Salivary Glands

Glands located in the mouth that produce saliva, which begins the process of digestion and keeps the mouth moist.

Mandible

The lower jaw or jawbone, the largest and strongest bone of the face.

Descending Colon

The part of the colon that travels downwards on the left side of the abdomen, responsible for storing the remains of digested food that will be emptied into the rectum.

Sigmoid Colon

An S-shaped tube that lies between the descending colon and the rectum.