Required informationProblem 11-8A 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 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; andLau, 50%). The partnership's capital balances are as follows: Meir, $36,000; Benson, $151,000; and Lau, $193,000. Bensondecides to withdraw from the partnership.Problem 11-8A Part 11. Prepare journal entries to record Benson's February 1 withdrawal under each separate assumption: (Do not round intermediatecalculations.)1. Benson sells her interest to North for $160,000 after North is approved as a partner.2. Benson gives her interest to a son-in-law, Schmidt, and Schmidt is approved as a partner.3. Benson is paid $151,000 in partnership cash for her equity.4. Benson is paid $189,000 in partnership cash for her equity.5. Benson is paid $24,000 in partnership cash plus equipment that is recorded on the partnership books at $56,000 less accumulateddepreciation of $17,920.View transaction listJournal entry worksheet<12Transaction13Note: Enter debits before credits.Record the withdrawal if Benson sells her interest to North for $160,000 afterNorth is approved as a partner.Record entry45General JournalClear entryDebitCreditView general journal>

Required information Problem 11-8A 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 1:4:5 ratio (in percents: Meir, 10% ; Benson, 40%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $36,000; Benson, $151,000; and Lau, $193,000. Benson decides to withdraw from the partnership. Problem 11-8A Part 1 1. Prepare journal entries to record Benson's February 1 withdrawal under each separate assumption: (Do not round intermediate calculations.)

Required information Problem 11-8A 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 1:4:5 ratio (in percents: Meir, 10% ; Benson, 40%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $36,000; Benson, $151,000; and Lau, $193,000. Benson decides to withdraw from the partnership. Problem 11-8A Part 1 1. Prepare journal entries to record Benson's February 1 withdrawal under each separate assumption: (Do not round intermediate calculations.)

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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! Required information Problem 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%; 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. Problem 12-5A (Algo) Part 2 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) $83,333; (b) $60,833; and (c) $109,166. Note: Do not round intermediate calculations. View transaction list Journal entry worksheet ☐ 2 3 Record the admission of Rhode with an investment of $83,333 for a 25% interest in the equity. >
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