loader  Loading... Please wait...

Question(s) / Instruction(s):

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

Prepare journal entries to record Zarcus's February 1 withdrawal from the partnership under each of the following separate assumptions (Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response):

 (a)         Zarcus sells her interest to Getz for $80,000 after Goering and Schmit approve the entry of Getz as a partner.

 (b)         Zarcus gives her interest to a son-in-law, Swanson, and thereafter Goering and Schmit accept Swanson as a partner.

 (c)          Zarcus is paid $179,000 in partnership cash for her equity.

 (d)         Zarcus is paid $217,000 in partnership cash for her equity.

 (e)         Zarcus is paid $16,000 in partnership cash plus equipment recorded on the partnership books at $36,000 less its accumulated depreciation of $11,600.

 

Part-2

Assume that Zarcus does not retire from the partnership described in Part 1. Instead, Ford is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Ford’s entry into the partnership under each of the following separate assumptions (Do not round intermediate calculations and round your final answers to the nearest dollar amount Omit the "$" sign in your response):

 (a)         Ford invests $150,000

 (b)         Ford invests $109,500

 (c)          Ford invests $196,500

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.00

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494