Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows:...

Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $88,000; McLean, $77,000; and Lux, $151,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare General Journal entries to record the May 1, 2020, withdrawal of McLean from the partnership under each of the following unrelated assumptions:

a. McLean sells his interest to Freedman for $172,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman).

b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner.
c. McLean is paid $77,000 in partnership cash for his equity.

d. McLean is paid $136,000 in partnership cash for his equity.

e. McLean is paid $31,250 in partnership cash plus machinery that is recorded on the partnership books at $119,000 less accumulated depreciation of $87,000. (Round final answers to 2 decimal places.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows:...

Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $91,000; McLean, $83,000; and Lux, $154,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare General Journal entries to record the May 1, 2017, withdrawal of McLean from the partnership under each of the following unrelated assumptions: a. McLean sells his interest to Freedman for $175,000 after Gale and Lux approve the entry of...

Zeller, Acker, and Benton are partners with capital balances as follows: Zeller, $89,000; Acker, $74,000; and...

Zeller, Acker, and Benton are partners with capital balances as follows: Zeller, $89,000; Acker, $74,000; and Benton, $152,000. The partners share profits and losses in a 3:2:5 ratio. Dent is admitted to the partnership on May 1, 2017, with a 25% equity. Prepare General Journal entries to record the entry of Dent into the partnership under each of the following unrelated assumptions: a. Dent invests $105,000: Record the admission of Dent. b. Dent invests $70,000: Record the Dent’s admission and...

Betsey and Brenda are partners. After the books are closed, their capital balances are $240,000 and...

Betsey and Brenda are partners. After the books are closed, their capital balances are $240,000 and $260,000, respectively. They share profits by a 2:6 ratio. They have decided to admit Angela to the partnership. Record Angelaʹs transaction if she purchases a 20% interest from the partnership for $90,000? Record Angelaʹs transaction if she purchases a 25% interest from the partnership for $200,000? Record Angelaʹs transaction if she purchases a 15% interest from the partnership for $100,000? Record Angelaʹs transaction if...

Tinkers, Evers and Chance are partners with capital balances of $75,000, $126,000, and $61,500, respectively on...

Tinkers, Evers and Chance are partners with capital balances of $75,000, $126,000, and $61,500, respectively on January 26, 2018. All nominal accounts have been adjusted and closed as of January 26, 2018. The partners share profits and losses according to the following percentages: 35% for Tinkers, 40% for Evers, and 25% for Chance. On January 26, 2018, Aparicio is to join the partnership upon contributing $67,500 in cash and some equipment with a book value of $14,500 and a fair...

The Capital balances of Partners Eliza and Sara are k20, 600 and K14, 400 respectively before...

The Capital balances of Partners Eliza and Sara are k20, 600 and K14, 400 respectively before Ruth and Tatty are admitted to the Partnership. At admission Ruth purchased One third of Eliza’s interest for k8, 000 and one third of Sara’s interest for k4, 200. Tatty was admitted to the Partnership with an investment of K8, 000. For which she is to receive ownership title of K8, 000. After one year of operations, the Partnership made an income of K7,...

The Capital balances of Partners Eliza and Sara are k20, 600 and K14, 400 respectively before...

Maddy, Nimah and Ritida are partners within a technology consulting business. They have capital balances of...

Maddy, Nimah and Ritida are partners within a technology consulting business. They have capital balances of $35 000, $25 000 and $12 000 respectively. They have an income ratio of 2:3:5. The partnership has the following assets and liabilities: Cash $20 000; Accounts Receivable $7 000; Computer Equipment $60 000; Accumulated Amortization – Computer Equipment $ 40000; Note Payable $15 000. On December 1, the partners decide to liquidate the assets and close the partnership. They manage to collect all...

Jen, Raks, and Fred are partners with average capital balances during 2019 of P945,000, P477,300, and...

Jen, Raks, and Fred are partners with average capital balances during 2019 of P945,000, P477,300, and P324,700, respectively. The partners receive 10% interest on their average capital balances; after deducting salaries of P244,650 to Jen and P165,250 to Fred, the residual profits or loss is divided equally. In 2019, the partnership had a net loss of P251,248 before the interest and salaries to partners. By what amount should Jen’s and Fred’s capital account change – increase (decrease)?

Phil Phoenix and Tim Tucson are partners in electrical repair business. Their respective capital balances are...

Phil Phoenix and Tim Tucson are partners in electrical repair business. Their respective capital balances are $90,000 and $50,000. and they share profits and losses equally. Because the partners are confronted with personal and financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process they elect to admit Don Dallas into the partnership. Required: Prepare the journal entry to record the admission of Don Dallas into the partnership under each of the following...

Kuzma, Folkert and Tucker are partners with capital account balances of $30,000. $75,000, and $45,000, respectively....

Kuzma, Folkert and Tucker are partners with capital account balances of $30,000. $75,000, and $45,000, respectively. Income and losses are divided in a 4:4:2 ratio. When Tucker decided to withdraw, Tucker was then given $15,000 cash and a note for $40,000 for his withdrawal from the partnership. Using the Bonus Method, prepare the journal entry to record Tucker's withdrawal. Problem 2 Dave, Allen and Matt share profits and losses in the ratio of 50:30:20. Allen withdrew from the partnership December...

Subjects