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The capital balance for Messalina is $210,000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded

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Answer: $216,000 , $144,000 , $90,000

Step-by-step explanation:

The capital balances for Messalina, Romulus, and Claudius after this investment is recorded will be calculated thus:

Messalina:

Capital balance: $210,000

Bonus share: 60% × $10000 = $6,000

New capital balance: $216,000

Romulus:

Capital balance: $140,000

Bonus share: 40% × $10000 = $4,000

New capital balance: $144,000

Claudius:

Capital balance: $100,000

Bonus share: 10% × $10000 = ($10,000)

New capital balance: $90,000

The answer is $216,000 , $144,000 , $90,000

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