Assume the following information just prior to the withdrawal of Partner X: Assets Liabilities Cash$20,000 Accounts payable $5,000 Inventory 50,000Partners’ Capital X, Capital $10,000 Y, Capital 20,000 Z, Capital 35,000, 65,000 $70,000 $70,000 Required: Prepare journal entries to record the following unrelated scenarios: 1.Partner X sells his interest to new partner T for$25,000. 2.Partner X sells his interest to partner Y for$30,000. 3.Partner X sells his interest and is paid a share of partnership net assets as follows Cash $5,000 Inventory 5,000 Accounts payable(2,000) $8,000 Partner Y receives a 60% share of the partnership interest of X. Partner Z receives 40%
CP 12–4 Assume the following information just prior to the withdrawal of Partner X: Assets Liabilities Cash$20,000 Accounts payable $5,000 Inventory 50,000Partners’ Capital X, Capital $10,000 Y, Capital 20,000 Z, Capital 35,000, 65,000 $70,000 $70,000
Required: Prepare
1.Partner X sells his interest to new partner T for$25,000.
2.Partner X sells his interest to partner Y for$30,000.
3.Partner X sells his interest and is paid a share of partnership net assets as follows Cash $5,000 Inventory 5,000 Accounts payable(2,000) $8,000 Partner Y receives a 60% share of the partnership interest of X. Partner Z receives 40%.
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