Accounting and Financial Reporting II
On December 31, a partnership has total partnership capital as
follows:
Partner #1,
capital
100,000
Partner #2,
capital
150,000
Partner #3,
capital
200,000
Total partnership
capital
450,000
The partners allocate income and losses 20% to partner #1, 30%
to partner #2 and 50% to partner #3. On December 31, Partner #3
retires from the partnership and is paid $225,000 in PARTNERSHIP
cash to settle his interest in the partnership. Prepare any
necessary journal entries on...