Cummings and Stickel Construction Company, a partnership, is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared equally. The books are kept on the calendar-year basis. On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wife’s interest for $30,000. After the books were closed, the partners’ capital accounts had credit balances as follows: Katie Cummings $90,000 Julie Stickel 60,000 Roy Hewson 50,000 Patricia Weber 40,000 Required: 1. Prepare the general journal entry required to enter the check issued to Mr. Weber in payment of his deceased wife’s interest in the partnership. According to the partnership agreement, the difference between the amount paid to Mr. Weber and the book value of Patricia Weber’s capital account is allocated to the remaining partners based on their ending capital account balances
Cummings and Stickel Construction Company, a partnership, is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared equally. The books are kept on the calendar-year basis. On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wife’s interest for $30,000. After the books were closed, the partners’ capital accounts had credit balances as follows: Katie Cummings $90,000 Julie Stickel 60,000 Roy Hewson 50,000 Patricia Weber 40,000 Required: 1. Prepare the general journal entry required to enter the check issued to Mr. Weber in payment of his deceased wife’s interest in the partnership. According to the partnership agreement, the difference between the amount paid to Mr. Weber and the book value of Patricia Weber’s capital account is allocated to the remaining partners based on their ending capital account balances
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How do I get the numbers for the answer i know that for example katies entry is 4500 but I dont know the fomula to get that answer from her 90000 total credit balance???!!!
Cummings and Stickel Construction Company, a partnership , is operating a general contracting business. Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Hewson, and Patricia Weber. Profits and losses are shared equally. The books are kept on the calendar-year basis.
On August 10, after the business had been in operation for several years, Patricia Weber passed away. Mr. Weber wished to sell his wife’s interest for $30,000. After the books were closed, the partners’ capital accounts had credit balances as follows:
| Katie Cummings | $90,000 |
| Julie Stickel | 60,000 |
| Roy Hewson | 50,000 |
| Patricia Weber | 40,000 |
Required:
| 1. | Prepare the general |
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