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  1. business
  2. accounting
  3. 2. the capital balances of the def partnership are

2. The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000...

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Accounting

2. The capital balances of the DEF Partnership are as follows:

Danielson $180,000

Eklund 95,000

Forsberg 150,000

Total $425,000

The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Assume the partnerships identifiable net assets are carried at amounts approximating fair value.

Case A:

Assume Gustafson joins the partnership by contributing $125,000 to the partnership for

a 20% interest in partnership capital.

Case B:

Now assume Gustafson paid $90,000 for a 20% interest in partnership capital.

Instruction: For each case (each case is independent), please use both Bonus method and Goodwill method to

analyze the problem. Prepare the Statement of Partners Capital Balances, as well as the related journals prepared

for the partnership.

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