Wright, Bell, and Edison are partners and share income in a 2.5.3 ratio. The partnership's capital balances are as follows: Wright, $33,000, Bell $27,000 and Edison $40,000. Edison decides to withdraw from the partnership, and the partners agree not to revalue the assets upon Edison's retirement. The journal entry to record Edison's June 1 withdrawal from the partnership if Edison sells his interest to Whitney for $45,000 after the other two partners approve Whitney as partner is: Multiple Choice C Debit Edison, Capital $45,000 credit Whitney, Capital $45.000 Debit Edison, Capital $40,000; credit Cash $40,000 Debit Edison, Capital $40,000, debit Wright, Capital $2.500, debit Bell, Capital $2.500, credit Whitney, Capital $45,000. Debit Edison, Capital $40,000, credit Whitney, Capital $40,000 Debit Edison, Capital $40,000, debit Cash $5,000, credit Whitney, Capital $45,000

Wright, Bell, and Edison are partners and share income in a 2.5.3 ratio. The partnership's capital balances are as follows: Wright, $33,000, Bell $27,000 and Edison $40,000. Edison decides to withdraw from the partnership, and the partners agree not to revalue the assets upon Edison's retirement. The journal entry to record Edison's June 1 withdrawal from the partnership if Edison sells his interest to Whitney for $45,000 after the other two partners approve Whitney as partner is: Multiple Choice C Debit Edison, Capital $45,000 credit Whitney, Capital $45.000 Debit Edison, Capital $40,000; credit Cash $40,000 Debit Edison, Capital $40,000, debit Wright, Capital $2.500, debit Bell, Capital $2.500, credit Whitney, Capital $45,000. Debit Edison, Capital $40,000, credit Whitney, Capital $40,000 Debit Edison, Capital $40,000, debit Cash $5,000, credit Whitney, Capital $45,000

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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