Ex. 15-8.

1. Bad Debt Expense

Allowance for Doubtful Accounts

180.00
180.00

2. Unrealized lost on Revaluation of Inventory

Inventory

2,000.00

3. Operating Expenses
Accrued Expenses

600.00

4. Insurance Expense
Prepaid Insurance

200.00

2,000.00
600.00
200.00

5. Total capital ($14,000/ (1/3))

Less Capital ($12,000 + 8,000 + 14,000) -2,980))
Goodwill

$42,000
(31,020)
$10,980

Goodwill
Bill, Capital (70%)
Jane, Capital (30%)

10,980

Cash

14,000

7,686
3,294

Mike, Capital

14,000

Ex. 15-9.
1. Beth, Capital
Steph, Capital
Linda, Capital
Total capital
Percentage after Mary
Total new capital
Marys contribution
Marys contributions
Cash
Mary Capital

2. Beth, Capital
Steph, Capital
Linda, Capital

$265,000
215,000
120,000
600,000
X 5/6
720,000
1/6
$120,000
120,000
120,000

$265,000
215,000
120,000

Mary Investment
Total new Capital
Marys Portion (1/5)
Mary, Capital
Cash

160,000
760,000
X
.20
$152,000
160,000

Mary, Capital
Beth, Capital (40%)
Steph, Capital (40%)
Linda, Capital (20%)

152,000
3,200
3,200
1,600

3. Beth, Capital
Steph, Capital
Linda, Capital
Mary Investment
Total new Capital
Marys Portion (1/4)
Mary, Capital

$265,000
215,000
120,000
160,000
760,000
X
.25
$190,000

Cash
Beth, Capital (40%)
Steph, Capital (40%)
Linda, Capital (20%)
Mary, Capital

160,000
12,000
12,000
8,000
190,000

Goodwill Method:
Cash
Goodwill
Mary. Capital

160,000
30,000

4. Beth, Capital
Steph, Capital
Linda, Capital
Mary Investment
Total new Capital
Marys Portion (40%)
Mary, Capital

$265,000
215,000
120,000
160,000
760,000
X
.40
$304,000

Cash

160,000

190,000

Beth, Capital (40%)

Steph, Capital (40%)
Linda, Capital (20%)
Mary, Capital
Goodwill Method:
Cash
Goodwill
Mary. Capital
Ex. 15-11.
1. C
2. E
3. D
4A
5. B
6. C

57,600
57,600
28,800
304,000
160,000
144,000
304,000