Jack, John, and Joe have been operating a business as a limited liability 2023, Jack, John, and Joe had a capital balance of $238,000, $173,000 and $140,000 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 Capital balance before the withdrawal 238000 Withdrawal of a partner 238000 Capital balance after the withdrawal 313000 John 173000 x 173000 x 33000 b) Prepare the journal entry to record the withdrawal of Joe Joe 140000 x 140000 Total 551000 x 0 411000
Jack, John, and Joe have been operating a business as a limited liability 2023, Jack, John, and Joe had a capital balance of $238,000, $173,000 and $140,000 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 Capital balance before the withdrawal 238000 Withdrawal of a partner 238000 Capital balance after the withdrawal 313000 John 173000 x 173000 x 33000 b) Prepare the journal entry to record the withdrawal of Joe Joe 140000 x 140000 Total 551000 x 0 411000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jack, John, and Joe have been operating a business as a limited liability partnership for several years. On September 15,
2023, Jack, John, and Joe had a capital balance of $238,000, $173,000 and $140,000 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.
Capital balance before the withdrawal 238000
Withdrawal of a partner
Capital balance after the withdrawal 313000
Jack
Date
Sep 15
238000
b) Prepare the journal entry to record the withdrawal of Joe
Account Title and Explanation
Joe, Capital
Cash
To record the withdrawal of a partner
173000
x 173000
x 33000
John
Debit
140000
x
140000
140000
0
Credit
140000
Joe
Total
551000
0
411000
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