The ABCD Partnership has the following balance sheet at January 1, 2012, prior to the admission of new partner, Eden.
| Cash and current assets |
$39,000 |
Liabilities |
$52,000 |
| Land |
$234,000 |
Adams, capital |
$26,000 |
| Building and equipment |
$130,000 |
Barnes, capital |
$52,000 |
|
|
Cordas, capital |
$117,000 |
|
|
Davis, capital |
$156,000 |
| Total |
$403,000 |
Total |
$403,000 |
Eden contributes $49,000 into the partnership for a 25% interest, The four original partners share profits and losses equally. Using the bonus method, determine the balances for each of the five partners after Eden joins the partnership and post journal entries. Eden's contribution of $49,000 into the partnership raises the total partnership net assets to $400,000. Eden's capital account is credited, by agreement, for 25% of the partnership's total tangible assets, or $100,000.