Question

In: Accounting

Required information Problem 12-5A Partner withdrawal and admission LO P3, P4 [The following information applies to...

Required information

Problem 12-5A Partner withdrawal and admission LO P3, P4

[The following information applies to the questions displayed below.]

Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio. The partnership's capital balances are as follows: Meir, $43,000; Benson, $179,000; and Lau, $228,000. Benson decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Benson's retirement.

Problem 12-5A Part 1

Prepare the journal entry to record Benson's withdrawal from the partnership under each of the following independent assumptions. (Do not round intermediate calculations.)

Benson (a) sells her interest to North for $160,000 after Meir and Lau approve the entry of North as a partner; (b) gives her interest to a son-in-law, Schmidt, and thereafter Meir and Lau accept Schmidt as a partner; (c) is paid $179,000 in partnership cash for her equity; (d) is paid $217,000 in partnership cash for her equity; and (e) is paid $16,000 in partnership cash plus equipment recorded on the partnership books at $36,000 less its accumulated depreciation of $11,600.
  

Journal entry worksheet

Record the withdrawal of Benson sells her interest to North for $160,000 after Meir and Lau approve the entry of North as a partner.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
(a)

Journal entry worksheet

Record the withdrawal of Benson on the assumption that she gives her interest to a son-in-law, Schmidt and thereafter Meir and Lau accept Schmidt as a partner.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
(b)

Journal entry worksheet

Record the withdrawal of Benson on the assumption that she is paid $179,000 in partnership cash for her equity.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
(c)

Journal entry worksheet

Record the withdrawal of Benson on the assumption that she is paid $217,000 in partnership cash for her equity.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
(d)

Journal entry worksheet

Record the withdrawal of Benson on the assumption that she is paid $16,000 in partnership cash plus equipment recorded on the partnership books at $36,000 less its accumulated depreciation of $11,600 for her equity.

Note: Enter debits before credits.
Transaction General Journal Debit Credit
(e)

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Required information Problem 12-5A Partner withdrawal and admission LO P3, P4 [The following information applies to...
Required information Problem 12-5A Partner withdrawal and admission LO P3, P4 [The following information applies to the questions displayed below.] Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio. The partnership's capital balances are as follows: Meir, $43,000; Benson, $179,000; and Lau, $228,000. Benson decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Benson's retirement. Problem 12-5A Part 2 Assume that Benson does not retire from...
Required information Problem 17-5A Comparative ratio analysis LO A1, P3 [The following information applies to the...
Required information Problem 17-5A Comparative ratio analysis LO A1, P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 800,000 $ 912,200 Cash $ 18,000 $ 34,000 Cost of goods sold 596,100 650,500 Accounts receivable, net 37,400 56,400 Interest expense...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows.    Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 64,600 Interest expense...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows.    Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 770,000 $ 880,200 Cash $ 19,500 $ 34,000 Cost of goods sold 585,100 632,500 Accounts receivable, net 46,500 64,600 Interest expense...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 780,000 $ 924,200 Cash $ 20,500 $ 31,000 Cost of goods sold 589,100 648,500 Accounts receivable, net 33,400 58,400 Interest expense 7,600...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions...
Required information Problem 13-5A Comparative ratio analysis LO P3 [The following information applies to the questions displayed below.] Summary information from the financial statements of two companies competing in the same industry follows. Barco Company Kyan Company Barco Company Kyan Company Data from the current year-end balance sheets Data from the current year’s income statement Assets Sales $ 780,000 $ 924,200 Cash $ 20,500 $ 31,000 Cost of goods sold 589,100 648,500 Accounts receivable, net 33,400 58,400 Interest expense 7,600...
Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to...
Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2017. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2017. Santana...
2 Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies...
2 Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019....
3 Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies...
3 Required information Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019....
Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions...
Serial Problem Business Solutions LO P1, P2, P3, P4 [The following information applies to the questions displayed below.] Santana Rey created Business Solutions on October 1, 2015. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2015. Santana Rey decided...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT