Chapter 12, Problem 5BPSB

To determine

Introduction:

An unincorporated association in which two or more people engage in business as co-owners for profit is known as partnership. In choosing the proper business form one of the many factors which are considered are generally taxes and liability risk.Partners can contribute as much capital to the partnership as they want while forming a partnership.

To calculate:

Prepare journal entries to record Gibbs's April 30 withdrawal under each separate assumption: