Accountants is a partnership with three partners. On February 29, 2024, the three partners, M. Anderson, H. White, and A. Martin, have capital balances of $80,940, $68,520, and $40,800, respectively. The profit and loss ratio is 4: 3:1. On March 1, 2024, White withdraws from the partnership and the remaining partners agree to pay him $85,680 cash from the partnership assets. After White leaves, Anderson and Martin agree to a 4:2 profit ratio. During the year ended February 28, 2025, the partnership earns a profit of $22,860. Neither Anderson nor Martin makes any withdrawals because the partnership is short of cash after paying White. On March 1, 2025, Anderson and Martin agree to admit C. Clark to the partnership with a 45% interest for $71,400 cash. After Clark is admitted, the new profit and loss ratio will be 4:2:5 for Anderson, Martin, and Clark, respectively. Journalize the withdrawal of White from the partnership

BDD Partnership is a service-oriented partnership that has three equal general partners. One of them, Barry Evans, sells his interest to another partner, Dale Allen, on December 31 (the last day of the current tax year) for $90,000 cash and the assumption of Barry's share of partnership liabilities. (Liabilities are shared equally by the partners.) Immediately before the sale (after reflecting operations for the year), the partnership's cash basis balance sheet was presented as shown below. The capital accounts before the sale reflect the partners' bases in their partnership interests, excluding liabilities. The payment exceeds the stated fair market value of the assets because of goodwill that is not recorded on the books. f.  How would Barry's tax result differ if, instead, BDD distributed $90,000 of its cash in liquidation of Barry's interest (with the remaining partners assuming Barry's share of partnership debt)? Why is this result different from Barry’s result when the interest…

Jabari becomes a 40% interest partner in an accounting partnership on January 1, 2022. During the fiscal period ended December 31, 2022, the partnership business earns income of $200,000 for accounting purposes. In arriving at this income, the bookkeeper deducted meals and entertainment costs of $20,000, and a charitable donation of $5,000. Jabari withdraws $50,000 from the partnership in 2022. As of January 1, 2023, the ACB of his partnership interest will have increased by: a. $24,000. b. $30,000 c. $34,000 d. $38,000

Stewardship Enterprises, a partnership, is about to begin liquidation. The process for selling the company’s assets will occur over time, but the partners would like to receive cash distributions as asset sales occur. The company’s books show total assets of $1 million, which includes a Note Receivable of $32,000 from partner Jones. Income allocations are 4:1:5 and existing partnership capital balances are: Jones $200,000; Smith $100,000; and Holt $90,000. Required: Prepare a cash distribution plan.

On August 3, the firm of Chapelle, Rock, and Pryor decided to liquidate its partnership. The partners have capital balances of $14,000, $102,000, and $86,000, respectively. The cash balance is $65,000, the book values of noncash assets total $167,000, and liabilities total $30,000. The partners share income and losses in the ratio of 1:2:2. Instructions 1. Prepare a statement of partnership liquidation, covering the period August 3–29, for each of the following independent assumptions:a. All of the noncash assets are sold for $217,000 in cash, the creditors are paid, and the remaining cash is distributed to the partners.b. All of the noncash assets are sold for $72,000 in cash, the creditors are paid, the partner with the debit capital balance pays the amount owed to the firm, and the remaining cash is distributed to the partners.2. Assume that the partner with the capital deficiency in part (b) declares bankruptcy and is unable to pay the deficiency. Journalize the entries to (a)…

Jenkins, Willis, and Trent invested $208,000, $364,000, and $468,000, respectively, in a partnership. During its first year, the firm recorded profit of $612,000.Required:Prepare entries to close the firm’s Income Summary account as of December 31 and to allocate the profit to the partners under each of the following assumptions:a.  The partners did not produce any special agreement on the method of distributing profits. Record to close income summary account.   b. The partners agreed to share profit and losses in the ratio of their beginning investments. Record to close income summary account.   c. The partners agreed to share profit by providing annual salary allowances of $112,000 to Jenkins, $122,000 to Willis, and $57,000 to Trent; allowing 15% interest on the partners’ beginning investments; and sharing the remainder equally. Record to close income summary account.

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Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership. During its first calendar year, the firm earned $249,000. Required Prepare the entry to close the firm’s Income Summary account as of its December 31 year-end and to allocate the $249,000 net income under each of the following separate assumptions. 1. The partners did not agree on a plan and therefore share income equally. 2. The partners agreed to share income and loss in the ratio of their beginning capital investments. 3. The partners agreed to share income and loss by providing annual salary allowances of $66,000 to Ries, $56,000 to Bax, and $80,000 to Thomas; granting 10% interest on the partners’ beginning capital investments; and sharing the remainder equally.

In Sandhill Co., the capital balances of the partners are A. Anderson $27,900 ; S. Harrin $23,250 ; and K. Robinson $33,480 . The partners share profit equally. On June 9 of the current year, D. Garcia is admitted to the partnership by purchasing one-half of K. Robinson's interest for $18,600 paid to him personally. Journalize the admission of Garcia on June 9. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)\\nDate Account Titles\\nDebit\\nCredit\\nJune 9\\nD. Garcit, Capi\\neTextbook and Media

Sandhill Accountants is a partnership with three partners. On February 28, 2021, the three partners, M. Kumar, H. Deol, and A. Kassam, have capital balances of $ 81,600, $ 65,500, and $ 44,700, respectively. The profit and loss ratio is 4:3:1. On March 1, 2021, Deol withdraws from the partnership and the remaining partners agree to pay him $79,800 cash from the partnership assets. After Deol leaves, Kumar and Kassam agree to a 4:2 profit ratio. During the year ended February 28, 2022, the partnership earns a profit of $ 22,800. Neither Kumar nor Kassam makes any withdrawals because the partnership is short of cash after paying Deol. On March 1, 2022, Kumar and Kassam agree to admit C. Mawani to the partnership with a 45% interest for $ 76.260 cash. After Mawani is admitted, the new profit ratio will be 4:2:5 for Kumar, Kassam, and Mawani, respectively.