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May 20, 2024

accounting homework / capital balance

NEIU ACTG 324 Homework assignment 4: Dissolution of partnership Due date: See the announcement on the D2L Name: . Note: This homework assignment accounts for 6 points. No point will be given when (1) it is incomplete, (2) it is past due, (3) no work is provided, or (4) most answer/work is incorrect. Points will be deducted if part of the answer/work provided is incorrect. April, May, and June have the following capital balances: $40,000, $75,000 and $65,000 respectively. The partners share profits and losses 20%, 40%, and 40% respectively. Consider the following five independent transactions: a. May retires and is paid $93,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of April? Answer: b. May retires and is paid $93,000 based on an independent appraisal of the business. If the goodwill method is used, what is the capital balance of April? Answer: c. The three partners agree to admit March for a 20% interest. March contributes $30,000 to the partnership. If the bonus method is used, what is the capital balance of April? Answer: d. The three partners agree to admit March for a 20% interest. March contributes $67,000 to the partnership. If the bonus method is used, what is the capital balance of April? Answer: e. The three partners agree to admit March for a 20% interest. March contributes $42,000 to the partnership. If the goodwill method is used, what is the amount of goodwill being recorded? Answer: NEIU

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