10. The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5: Ace, Capital $ 151,900 Jack, Capital 201,600 Spade, Capital 121,700 The partners allocate partnership income and loss in the ratio 20:30:50, respectively. Required: Record Spade’s withdrawal under each of the following independent situations. b. Jack acquired Spade’s capital interest for $150,500 in a personal transaction. Partnership assets were not revalued, and partnership goodwill applicable to the entire business was recognized by the partnership. 1.Record the recognition of goodwill and the allocation to the partners.2. Record the transfer of capital.
10. The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5: Ace, Capital $ 151,900 Jack, Capital 201,600 Spade, Capital 121,700 The partners allocate partnership income and loss in the ratio 20:30:50, respectively. Required: Record Spade’s withdrawal under each of the following independent situations. b. Jack acquired Spade’s capital interest for $150,500 in a personal transaction. Partnership assets were not revalued, and partnership goodwill applicable to the entire business was recognized by the partnership. 1.Record the recognition of goodwill and the allocation to the partners.2. Record the transfer of capital.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Question
10.
The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5:
| Ace, Capital | $ 151,900 |
|---|---|
| Jack, Capital | 201,600 |
| Spade, Capital | 121,700 |
The partners allocate partnership income and loss in the ratio 20:30:50, respectively.
Required:
Record Spade’s withdrawal under each of the following independent situations.
b. Jack acquired Spade’s capital interest for $150,500 in a personal transaction. Partnership assets were not revalued, and partnership goodwill applicable to the entire business was recognized by the partnership.
1.Record the recognition of goodwill and the allocation to the partners.
2. Record the transfer of capital.
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