partnership accounting 461090

I have 5 all together. Here is #2 of 5:

2 – Miller and Davis, partners in a consulting business, share profits and losses in the ratio of 3:2, respectively. Prior to recording the admission of Shaw as a new partner, Miller has a capital balance of $80,000, and Davis has a capital balance of $40,000.

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Required:

For each of the following independent cases, prepare the journal entry that was made to record the admission of Shaw into the partnership.

1) Shaw purchased 20 percent of the respective capital balances of Miller and Davis, paying $20,000 cash directly to each of them.

2) Shaw invested $30,000 cash in the partnership for a 20 percent ownership interest. Total capital after recording his admission was $150,000.

3) Shaw invested $40,000 cash into the partnership for a 20 percent ownership interest. Total capital after recording his admission was $160,000.

4) Shaw invested $50,000 into the partnership for a 20 percent interest. Goodwill is to be recognized.

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