Meir, Benson, and Lau are partners and share income and loss in a 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. (Assume that Benson does not retire feom partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhodes entry into the partnership under each seperate assumption: Rhode invests(a) $83, 333; (b) $ 60, 833; (c) $109, 166.

Meir, Benson, and Lau are partners and share income and loss in a 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. (Assume that Benson does not retire feom partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhodes entry into the partnership under each seperate assumption: Rhode invests(a) $83, 333; (b) $ 60, 833; (c) $109, 166.

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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Daggett, Lamppin, and Pendergast are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $143,000, $89,000, and $58,000, respectively. Assume instead that Daggett leaves the partnership. Daggett is paid $177,000 with a bonus to the retiring partner.Prepare the journal entry to record Daggett’s withdrawal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit select an account title enter a debit amount enter a credit amount select an account title enter a debit amount enter a credit amount select an account title enter a debit amount enter a credit amount…
[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.)
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Jay
[The following information applies to the questions displayed below.] Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $147,600; total liabilities, $96,000; Turner, Capital, $4,300; Roth, Capital, $14,900; and Lowe, Capital, $32,400. The liquidation resulted in a loss of $88,600. Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners. Lowe is a limited partner, meaning any remaining deficiency in Lowe’s capital account is covered by Turner and Roth. Determine how much, if any, each partner should contribute to the partnership to cover any remaining capital deficiency. (Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign.)
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Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $111,000, $62,000, and $32,000, respectively. Assume instead that Foss leaves the partnership. Foss is paid $129,000 with a bonus to the retiring partner. Prepare the journal entry to record Foss’s withdrawal. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
[The following information applies to the questions displayed below.] Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $147,600; total liabilities, $96,000; Turner, Capital, $4,300; Roth, Capital, $14,900; and Lowe, Capital, $32,400. The liquidation resulted in a loss of $88,600. Required:a. Allocate the loss to the partners.b. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency.
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