Fluffy, Anjelah, and Lopez are partners and share income and losses as follows: Fluffy, 20%; Anjelah, 30%; and Lopez, 50%. The partnership’s capital balances follow: Fluffy, $330; Anjelah, $270; and Lopez, $400. Lopez decides to withdraw from the partnership. Prepare journal entries to record Lopez’s May 1 withdrawal from the partnership under each separate assumption: a. Lopez sells his interest to Mencia for $500 after Mencia is accepted as a partner. b. Lopez gives his interest to a son-in-law, Madrigal, and Madrigal is accepted as a partner. c. Lopez is paid $400 in partnership cash for his equity. d. Lopez is paid $600 in partnership cash for his equity. e. Lopez is paid $70 in partnership cash plus equipment recorded on the partnership books at $40 less its accumulated depreciation of $10.
Fluffy, Anjelah, and Lopez are partners and share income and losses as follows: Fluffy, 20%; Anjelah,
30%; and Lopez, 50%. The
$400. Lopez decides to withdraw from the partnership. Prepare
withdrawal from the partnership under each separate assumption:
a. Lopez sells his interest to Mencia for $500 after Mencia is accepted as a partner.
b. Lopez gives his interest to a son-in-law, Madrigal, and Madrigal is accepted as a partner.
c. Lopez is paid $400 in partnership cash for his equity.
d. Lopez is paid $600 in partnership cash for his equity.
e. Lopez is paid $70 in partnership cash plus equipment recorded on the partnership books at $40 less its
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