!Required informationProblem 12-5A (Algo) Partner withdrawal and admission LO P3, P4[The following information applies to the questions displayed below.]Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; andLau, 50%). The partnership's capital balances are as follows: Meir, $48,000; Benson, $74,000; and Lau, $128,000. Bensondecides to withdraw from the partnership.Problem 12-5A (Algo) Part 22. Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership onFebruary 1 with a 25% equity. Prepare journal entries to record Rhode's entry into the partnership under each separate assumption:Rhode invests (a) $83,333; (b) $60,833; and (c) $109,166.Note: Do not round intermediate calculations.View transaction listJournal entry worksheet☐23Record the admission of Rhode with an investment of $83,333 for a 25%interest in the equity.>

Partnership is a type of business in which there are more than one person who carry out the business…

Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $48,000; Benson, $74,000; and Lau, $128,000. Benson decides to withdraw from the partnership.

Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $48,000; Benson, $74,000; and Lau, $128,000. Benson decides to withdraw from the partnership.

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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[The following information applies to the questions displayed below.] Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $86, 000; Benson, $131,000; and Lau, $223,000. Benson decides to withdraw from the partnership. 2. Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhode's entry into the partnership under each separate assumption: Rhode invests (a) $146, 667; (b) $107,067; and (c) $192,134. (Do not round intermediate calculations.)
A partnership has liquidated all assets but still reports the following account balances: The partners split profits and losses as follows: Cisneros, 40 percent; Beck, 20 percent; Sadak, 10 percent; Emerson, 20 percent; and Page 10 percent. Assuming that all partners are personally insolvent except for Sadak and Emerson, how much cash must Sadak now contribute to this partnership?
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Lopez, Cruz, and Perez are partners and share net income and loss in a 6.4:1 ratio (in ratio form: Lopez, 6/11; Cruz, 4/11; and Perez, 1/11). On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,500; Cruz, $2,300; and Perez, $1,700. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $1,700; (2) $2,350; and (3) $950. View transaction list Journal entry worksheet
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