Question

In: Accounting

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 31. 2014. Capital account balances are as follows: Dave, Capital 80,000 $ Allen, Capital 80,000 $ Matt, Capital 62,000 $

Required: Prepare the journal entry or entries to record the withdrawal of Allen, given each of the following situations. Assume the bonus method is used to account for the withdrawal.

1. Allen receives $35,000 cash and a $75,000 note from the partnership for his interest.

2. The partnership gives Allen $35,000 cash and equipment with a book value and a fair value of $40,000 for his interest.

3. The partnership gives Allen $100,000 cash for his interest.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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