a) Calculate the new capital balance for each partner after the withdrawal of Joe. Jack John Joe Total Capital balance before the withdrawal Withdrawal of |a partner Capital balance after the withdrawal b) Prepare the journal entry to record the withdrawal of Joe Date Account Title and Explanation Debit Credit Jul 11 To record the withdrawal of a partner
a) Calculate the new capital balance for each partner after the withdrawal of Joe. Jack John Joe Total Capital balance before the withdrawal Withdrawal of |a partner Capital balance after the withdrawal b) Prepare the journal entry to record the withdrawal of Joe Date Account Title and Explanation Debit Credit Jul 11 To record the withdrawal of a partner
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
C4.7
Transcribed Image Text:Jack, John, and Joe have been operating a business as a limited liability
partnership for several years. On July 11, 2020, Jack, John, and Joe had a
capital balance of $226,000, $189,000 and $127,000 respectively. However,
Joe decided to withdraw from the partnership to pursue other opportunities.
The partners agreed that Joe would receive the current value of his capital
account using the partnership's cash.
Do not enter dollar signs or commas in the input boxes.
Use the negative sign for amounts that must be subtracted.
a) Calculate the new capital balance for each partner after the withdrawal of
Joe.
Jack
John
Joe
Total
Capital
balance
before the
withdrawal
Withdrawal of
a partner
Capital
balance after
the
withdrawal
b) Prepare the journal entry to record the withdrawal of Joe
Date
Account Title and Explanation
Debit
Credit
Jul 11
To record the withdrawal of a
partner
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