!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?
Siham and Dalia are partners with capital balances of $60,000 and $40,000, respectively. Profits and losses are divided in the ratio of 60:40. Siham and Dalia decided to form a new partnership with Jamileh, who invested land valued at $40,000 for a 20 percent capital interest in the new partnership. Jamileh's cost of the land was $35,000. The partnership elected to use the bonus method to record Jamileh's admission into the partnership. Jamileh's capital account should be credited for a. $40,000. b. $28,000. c. $35,000. d. $27,000.
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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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Lewis, Sadie and Warren are partners with the following capital balances and profit and loss percentages: Lewis: $120,000 (60%) Sadie: $ 60,000 (20%) Warren: $ 40,000 (20%) Sadie wishes to withdraw from the partnership and it is agreed that she will receive her current capital balance plus his share of any valuation adjustments associated with the fair value of the whole business being greater than book value. Assume that the fair value of the whole business is $100,000 greater than the book value. The bonus method is being used. What will the balance of Warren’s capital account be after the withdrawal of Sadie.