Question

The ABBH Partnership has the following balance sheet at January 1, 2021, prior to the admission of new partner, Kluver. Cash and current assets $ 59,000 Liabilities $ 62,000 Land 244,000 Anderson, capital 36,000 Building and equipment 135,000 Best, capital 72,000 Blankers, capital 117,000 Hecht, capital 151,000 Total $438,000 Total $438,000 Consider the following independent questions. a. Kluver contributes $58,000 into the partnership for a 20% interest. The four original partners share profits and losses equally. Using the bonus method, prepare the journal entry to record the admission of Kluver. Please show any calculations for the opportunity for partial credit. (12 points) b. Kluver contributes $120,000 into the partnership for a 25% interest. The four original partners share profits and losses equally. Goodwill is to be recorded. Prepare the journal entries to record the admission of Kluver. Please show any calculations for the opportunity for partial credit (13 points).

          The ABBH Partnership has the following balance sheet at January 1, 2021, prior to
the admission of new partner, Kluver.
Cash and current assets
$ 59,000 Liabilities
$ 62,000
Land
244,000 Anderson, capital
36,000
Building and equipment
135,000 Best, capital
72,000
Blankers, capital
117,000
Hecht, capital
151,000
Total
$438,000 Total
$438,000
Consider the following independent questions.
a. Kluver contributes $58,000 into the partnership for a 20% interest. The four
original partners share profits and losses equally. Using the bonus method, prepare
the journal entry to record the admission of Kluver. Please show any calculations for the
opportunity for partial credit. (12 points)
b. Kluver contributes $120,000 into the partnership for a 25% interest. The four
original partners share profits and losses equally. Goodwill is to be recorded. Prepare
the journal entries to record the admission of Kluver. Please show any calculations for
the opportunity for partial credit (13 points).

The ABBH Partnership has the following balance sheet at January 1, 2021, prior to
the admission of new partner, Kluver.
Cash and current assets
59,000 Liabilities 62,000
Land
244,000 Anderson, capital
36,000
Building and equipment
135,000 Best, capital
72,000
Blankers, capital
117,000
Hecht, capital
151,000
Total
438,000 Total438,000
Consider the following independent questions.
a. Kluver contributes 58,000 into the partnership for a 20% interest. The four
original partners share profits and losses equally. Using the bonus method, prepare
the journal entry to record the admission of Kluver. Please show any calculations for the
opportunity for partial credit. (12 points)
b. Kluver contributes120,000 into the partnership for a 25% interest. The four
original partners share profits and losses equally. Goodwill is to be recorded. Prepare
the journal entries to record the admission of Kluver. Please show any calculations for
the opportunity for partial credit (13 points).

Added by Janet S.

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