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Jefferson, Cleveland and Mckinley are partners with capital balances on June 30, 2020, of P 90,000; P 90,000 and P 60,000 respectively. Profits are share equally. Mckinley withdraws from the partnership. The partners agree that Mckinley is to take certain furniture and fixture and their second hand value of P 3,600, and a note for the balance of his interest. The furniture and fixture are carried on the books as fully depreciated. What is the entry would be made to record the settlement with Mckinley? A. Mckinley, capital 60,000 Notes payable 60,000 B. Mckinley, capital 60,000 Furniture and fixture Notes payable Jefferson, capital 3,600 52,800 1,800 Cleveland 1,800 C. Mckinley, capital 61,200 Furniture and fixture 3,600 19,200 Notes payable D. Mckinley, capital Jefferson 61,200 Cleveland, capital Mckinley, capital Notes payable 1,200 1,200 1,200 57,600

Jefferson, Cleveland and Mckinley are partners with capital balances on June 30, 2020, of P 90,000; P 90,000 and P 60,000 respectively. Profits are share equally. Mckinley withdraws from the partnership. The partners agree that Mckinley is to take certain furniture and fixture and their second hand value of P 3,600, and a note for the balance of his interest. The furniture and fixture are carried on the books as fully depreciated. What is the entry would be made to record the settlement with Mckinley? A. Mckinley, capital 60,000 Notes payable 60,000 B. Mckinley, capital 60,000 Furniture and fixture Notes payable Jefferson, capital 3,600 52,800 1,800 Cleveland 1,800 C. Mckinley, capital 61,200 Furniture and fixture 3,600 19,200 Notes payable D. Mckinley, capital Jefferson 61,200 Cleveland, capital Mckinley, capital Notes payable 1,200 1,200 1,200 57,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jefferson, Cleveland and Mckinler are partners with capital balances on June 30, 2020, of 90,000 and 60,000 respectively.  Profits are share equally. Mckinley withdraws from the partnership.  The partners agree that Mckinley is to take certain furniture and fixture and their second hand value of 3700, and a note for the balance of his interest.  The furniture and fixture are carried on the books as fully depreciated.

 

What is the entry to be made to record the settlement with Mckinley?

Jefferson, Cleveland and Mckinley are partners with capital balances on June 30, 2020, of P 90,000; P 90,000 and P 60,000 respectively. Profits are share equally. Mckinley withdraws from the partnership. The partners agree that Mckinley is to take certain furniture and fixture and their second hand value of P 3,600, and a note for the balance of his interest. The furniture and fixture are carried on the books as fully depreciated. What is the entry would be made to record the settlement with Mckinley? A. Mckinley. capital 60,000 Notes payable B. Mckinley. capital 60,000 60,000 Furniture and fixture 3,600 Notes payable Jefferson, capital 52,800 1,800 Cleveland 1,800 C. Mckinley, capital 61,200 Furniture and fixture 3,600 Notes payable 19,200 61.200 D. Mckinley, capital Jefferson 1,200 1,200 Cleveland, capital Mckinley, capital Notes payable 1,200 57.600 lohr
Transcribed Image Text:Jefferson, Cleveland and Mckinley are partners with capital balances on June 30, 2020, of P 90,000; P 90,000 and P 60,000 respectively. Profits are share equally. Mckinley withdraws from the partnership. The partners agree that Mckinley is to take certain furniture and fixture and their second hand value of P 3,600, and a note for the balance of his interest. The furniture and fixture are carried on the books as fully depreciated. What is the entry would be made to record the settlement with Mckinley? A. Mckinley. capital 60,000 Notes payable B. Mckinley. capital 60,000 60,000 Furniture and fixture 3,600 Notes payable Jefferson, capital 52,800 1,800 Cleveland 1,800 C. Mckinley, capital 61,200 Furniture and fixture 3,600 Notes payable 19,200 61.200 D. Mckinley, capital Jefferson 1,200 1,200 Cleveland, capital Mckinley, capital Notes payable 1,200 57.600 lohr
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