Prepare the journal entry to record the withdrawal

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Reference no: EM132791201

Question -

a) Armstrong plans to leave the JT Partnership. At this time her capital account is $48,000. The remaining partners, Tanner and Jackson, agree to pay Armstrong $58,000 in cash upon leaving the partnership. Assume the partners share profits and losses equally. Prepare the journal entry to record the withdrawal.

b) The partners of the Blue Tooth Partnership agree to liquidate the partnership. After all the liabilities of $100,000 are paid, the capital account balances are: Wong, $80,000; Winslow, $70,000; and Peters, ($4,000). Peters is unable to pay his capital deficiency. Assume the partners share profits and losses equally. Prepare the journal entries required to liquidate the partnership.

Reference no: EM132791201

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