E12-13B S. Heerey, E. Jenks, and N. Garland have capital balances of $60,000, $50,000, and $45,000, respectively. Their income ratios are 4 : 3 : 3. Garland withdraws from the partnership under each of the following independent conditions. 1. Heerey and Jenks agree to purchase Garland’s equity by paying $25,000 each from their personal assets. Each purchaser receives 50% of Garland’s equity. 2. Jenks agrees to purchase all of Garland’s equity by paying $33,000 cash from her personal assets. 3. Heerey agrees to purchase all of Garland’s equity by paying $38,000 cash from her personal assets. Instructions Journalize Garland’s withdrawal under each of the assumptions above.
E12-13B S. Heerey, E. Jenks, and N. Garland have capital balances of $60,000, $50,000, and $45,000, respectively. Their income ratios are 4 : 3 : 3. Garland withdraws from the partnership under each of the following independent conditions. 1. Heerey and Jenks agree to purchase Garland’s equity by paying $25,000 each from their personal assets. Each purchaser receives 50% of Garland’s equity. 2. Jenks agrees to purchase all of Garland’s equity by paying $33,000 cash from her personal assets. 3. Heerey agrees to purchase all of Garland’s equity by paying $38,000 cash from her personal assets. Instructions Journalize Garland’s withdrawal under each of the assumptions above.
Chapter20: Corporations And Parterships
Section: Chapter Questions
Problem 55P
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*E12-13B S. Heerey, E. Jenks, and N. Garland have capital balances of $60,000, $50,000, and $45,000, respectively. Their income ratios are 4 : 3 : 3. Garland withdraws from the partnership under each of the following independent conditions. 1. Heerey and Jenks agree to purchase Garland’s equity by paying $25,000 each from their personal assets. Each purchaser receives 50% of Garland’s equity. 2. Jenks agrees to purchase all of Garland’s equity by paying $33,000 cash from her personal assets. 3. Heerey agrees to purchase all of Garland’s equity by paying $38,000 cash from her personal assets. Instructions Journalize Garland’s withdrawal under each of the assumptions above.
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