At April 30, partners' capital balances in PDL Company are: G. Donley $48,100, and J. Pinkston $17,600. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner.
(a) Journalize the admission of Terrell under each of the following independent assumptions.
(1) Terrell purchases 50% of Pinkston's ownership interest by paying Pinkston $16,390 in cash.
(2) Terrell purchases 331/3% of Lamar's ownership interest by paying Lamar $14,500 in cash.
(3) Terrell invests $64,200 for a 30% ownership interets, and bonuses are given to the old partners.
(4) Terrell invests $41,900 for a 30% ownership interest, which includes a bonus to the new partner.
Lamar's capital balance is $37,400 after admitting Terrell to the partnership by investing. If Lamar's ownership interest is 20% of total partnership capital, what were Terrell's cash investment and the bonus to the new partner?