B. Higgins, J. Mayo, and N. Rice have capital balances of $93,500, $83,000, and $63,000, respectively. They share income or loss o 5:3:2 basis. Rice withdraws from the partnership under each of the following conditions. 1. Rice is paid $68,200 in cash from partnership assets, and a bonus is granted to the retiring partner. 2. Rice is paid $55,400 in cash from partnership assets, and bonuses are granted to the remaining partners. Journalize the withdrawal of Rice under each of the assumptions above. (Credit account titles are automatically indented when amou entered. Do not indent manually.)
B. Higgins, J. Mayo, and N. Rice have capital balances of $93,500, $83,000, and $63,000, respectively. They share income or loss o 5:3:2 basis. Rice withdraws from the partnership under each of the following conditions. 1. Rice is paid $68,200 in cash from partnership assets, and a bonus is granted to the retiring partner. 2. Rice is paid $55,400 in cash from partnership assets, and bonuses are granted to the remaining partners. Journalize the withdrawal of Rice under each of the assumptions above. (Credit account titles are automatically indented when amou entered. Do not indent manually.)
Chapter21: Partnerships
Section: Chapter Questions
Problem 11BCRQ
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Transcribed Image Text:B. Higgins, J. Mayo, and N. Rice have capital balances of $93,500, $83,000, and $63,000, respectively. They share income or loss on a
5:3:2 basis. Rice withdraws from the partnership under each of the following conditions.
1.
Rice is paid $68,200 in cash from partnership assets, and a bonus is granted to the retiring partner.
2.
Rice is paid $55,400 in cash from partnership assets, and bonuses are granted to the remaining partners.
Journalize the withdrawal of Rice under each of the assumptions above. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
No. Account Titles and Explanation
Debit
Credit
1.
N. Rice, Capital
2.
B. Higgins, Capital
J.Mayo, Capital
Cash
N. Rice, Capital
B. Higgins, Capital
J.Mayo, Capital
Cash
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