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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ace, Capital	$ 151,900
Jack, Capital	201,600
Spade, Capital	121,700

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.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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