Reference no: EM131764422
Meir, Benson, And Lau are partners and share income loss in 3:2:5 ratio, The partnerships capital balances are as follows: Meir 103,000 Benson 69000 Lau 178000
Benson decides to withdrawal from the partnership and the partner agrees to not have the assets revalued upon Benson's retirement.
Prepare journal entries to record Benson's Feb withdrawal from the partnership under each of the following separate assumptions:
a. Benson sells her interest to North for $160,000 after Meir and Lau approve the entry of North as a partner.
b. Benson gives her interest to a son in law Schmidt and thereafter Meir and Lau accept Schmidt as a partner.
c. Benson is paid $69,000 in partnership cash for her equity.
d. Benson is paid $107,000 in partnership cash for her equity
e. Benson is paid $13,500 in partnership cash plus equipment recorded on the partnership books at $33,500 less its accumulated depreciation of $11,600.
Assume that Benson does not retire from the partnership described initially. Instead Rhode is admitted to the partnership on Feb 1 with 25% equity. Record Rhodes entry into the partnership under each of the following separate assumptions:
a. Rhodes invests $116, 667
b. Rhode invests $85, 167
c. Rhode invests $ 152,834