13-14-15 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. e. Spade received $150,300 of partnership cash upon retirement. The partnership recorded the portion of goodwill attributable to Spade. f. Spade received $150,300 of partnership cash upon retirement. The partnership goodwill attributable to all the partners was recorded. Record the recognition of goodwill for the entire firm upon Spade's retirement. Record the payment of the bonus to Spade upon his retirement. g. Because of limited cash in the partnership, Spade received land with a fair value of $102,000 and a partnership note payable for $51,300. The land’s carrying amount on the partnership books was $61,100. Capital of the partnership after Spade’s retirement was $362,800. Record the revaluation of land. Record the settlement of Spade's share by giving land and notes payable.
13-14-15
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.
e. Spade received $150,300 of partnership cash upon retirement. The partnership recorded the portion of goodwill attributable to Spade.
f. Spade received $150,300 of partnership cash upon retirement. The partnership goodwill attributable to all the partners was recorded.
- Record the recognition of goodwill for the entire firm upon Spade's retirement.
- Record the payment of the bonus to Spade upon his retirement.
g. Because of limited cash in the partnership, Spade received land with a fair value of $102,000 and a partnership note payable for $51,300. The land’s carrying amount on the partnership books was $61,100. Capital of the partnership after Spade’s retirement was $362,800.
- Record the revaluation of land.
- Record the settlement of Spade's share by giving land and notes payable.
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