Question description

At April 30, partners’ capital balances in ZCF company are: Z $30,000. C $ 16,000, and F $ 15,000. The income sharing ratios are 5 : 3 : 2, on may 1, the ZCFC company is formed by admitting Chantho to the firm as partner. (a) Journalize the admissionof Chantho under each of the following independent assumptions. (1) Chantho purchase 50% of F ownership interest by paying $6,000 in cash. (2) Chantho purchase 50% of C ownership interest by paying $10,000 in cash. (3) Chantho invests $29,000 cash in the partnership for a 40% ownership interest that includes a bonus to the new partner. (4) Chantho invests $24,000 in partnership for a 20% ownership interest and bonuses are given to the old partners. (b) Cross capital balance is 24,000 after admitting Chantho to the partnership by investment. If Cross ownership interest is24% of total partnership capital what were (1) Chantho’s cash investment and (2) the total bonus to the old partners?

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