11-12 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. c. Spade received $181,000 of partnership cash upon retirement. Capital of the partnership after Spade’s retirement was $294,200. d. Spade received $62,000 of cash and partnership land with a fair value of $120,600. The carrying amount of the land on the partnership books was $101,400. Capital of the partnership after Spade’s retirement was $311,800. 1. Record the revaluation of land. 2. Record the payment of cash and land to Spade upon his retirement.
11-12
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.
c. Spade received $181,000 of partnership cash upon retirement. Capital of the partnership after Spade’s retirement was $294,200.
d. Spade received $62,000 of cash and partnership land with a fair value of $120,600. The carrying amount of the land on the partnership books was $101,400. Capital of the partnership after Spade’s retirement was $311,800.
1.
- Record the revaluation of land.
2.
- Record the payment of cash and land to Spade upon his retirement.
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