Lopez, Cruz, and Perez are partners and share net income and loss in a 6.4:1 ratio (in ratio form: Lopez, 6/11; Cruz, 4/11; and Perez, 1/11). On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,500; Cruz, $2,300; and Perez, $1,700. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $1,700; (2) $2,350; and (3) $950. View transaction list Journal entry worksheet < 1 2 3 Record the retirement of Perez assuming that she is paid $1,700 for her equity. Note: Enter debits before credits. Date December 31 General Journal Debit Credit >

Lopez, Cruz, and Perez are partners and share net income and loss in a 6.4:1 ratio (in ratio form: Lopez, 6/11; Cruz, 4/11; and Perez, 1/11). On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,500; Cruz, $2,300; and Perez, $1,700. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $1,700; (2) $2,350; and (3) $950. View transaction list Journal entry worksheet < 1 2 3 Record the retirement of Perez assuming that she is paid $1,700 for her equity. Note: Enter debits before credits. Date December 31 General Journal Debit Credit >

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 47P

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Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio (in ratio form: Lopez, 6/11; Cruz, 4/11; and Perez, 1/11). On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,500; Cruz, $2,300; and Perez, $1,700. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $1,700; (2) $2,350; and (3) $950. View transaction list Journal entry worksheet 1 2 3 Record the retirement of Perez assuming that she is paid $1,700 for her equity. Note: Enter debits before credits. Date December 31 General Journal Debit Credit
Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio (in ratio form: Lopez, 6/11; Cruz, 4/11; and Perez, 1/11). On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,200; Cruz, $2,000; and Perez, $1,400. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $1,400; (2) $1,900; and (3) $800.
Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio (in ratio form: Lopez, 6/11; Cruz, 4/11; and Perez, 1/11). On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,500; Cruz, $2,300; and Perez, $1,700. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $1,700; (2) $2,350; and (3) $950. View transaction list Journal entry worksheet 2 3 1 Record the retirement of Perez assuming that she is paid $1,700 for her equity. Note: Enter debits before credits. Date Dec 31 Record entry General Journal Clear entry Debit Credit View general journal >
Meir, Benson, and Lau are partners and share income and loss in a 3:2:5 ratio (in percents: Meir, 30%; Benson, 20%; and Lau, 50%). The partnership’s capital balances are as follows: Meir, $168,000; Benson, $138,000; and Lau, $294,000. Benson decides to withdraw from the partnership. Prepare journal entries to record Benson’s February 1 withdrawal under each separate assumption: a. Benson sells her interest to North for $160,000 after North is approved as a partner. b. Benson gives her interest to a son-in-law, Schmidt, and Schmidt is approved as a partner. c. Benson is paid $138,000 in partnership cash for her equity. d. Benson is paid $214,000 in partnership cash for her equity. e. Benson is paid $30,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated depreciation of $23,200. Part 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%…
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 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.
Matt is withdrawing from the partnership of Matt, Lee, and Karla. The partners share profits and losses in a 1:2:3 ratio for Matt, Lee, and Karla, respectively. After the revalua- tion of assets, Matt's capital balance is $50,000, and the other partners agree to pay him $60,000. Journalize the payment to Matt and his withdrawal from the partnership.
On October 31, Sally retires from the partnership of Sally, Blake, and Taylor. The partner capital balances are Sally, $36,000; Blake $47,000; and Taylor, $26,000. The profit-and-loss-sharing ratio has been 5:3:2 for Sally, Blake, and Taylor, respectively. Requirements 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. 2. Journalize the withdrawal of Sally assuming she receives $32,000 cash. ..... Requirement 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Oct. 31
On October 31, Sally retires from the partnership of Sally, Blake, and Taylor. The partner capital balances are Sally, $36,000; Blake $47,000; and Taylor, $26,000. The profit-and-loss-sharing ratio has been 5:3:2 for Sally, Blake, and Taylor, respectively. Requirements 1. Journalize the withdrawal of Sally assuming she receives $75,000 cash. 2. Journalize the withdrawal of Sally assuming she receives $32,000 cash.
Fluffy, Anjelah, and Lopez are partners and share income and losses as follows: Fluffy, 20%; Anjelah, 30%; and Lopez, 50%. The partnership’s capital balances follow: Fluffy, $330; Anjelah, $270; and Lopez, $400. Lopez decides to withdraw from the partnership. Prepare journal entries to record Lopez’s May 1 withdrawal from the partnership under each separate assumption: a. Lopez sells his interest to Mencia for $500 after Mencia is accepted as a partner. b. Lopez gives his interest to a son-in-law, Madrigal, and Madrigal is accepted as a partner. c. Lopez is paid $400 in partnership cash for his equity. d. Lopez is paid $600 in partnership cash for his equity. e. Lopez is paid $70 in partnership cash plus equipment recorded on the partnership books at $40 less its accumulated depreciation of $10.
Foss, Albertson, and Espinosa are partners who share profits and losses 50%, 30%, and 20%, respectively. Their capital balances are $111,000, $62,000, and $32,000, respectively. Assume instead that Foss leaves the partnership. Foss is paid $129,000 with a bonus to the retiring partner. Prepare the journal entry to record Foss’s withdrawal. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $96,000; McLean, $93,000; and Lux, $159,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare General Journal entries to record the May 1, 2020, withdrawal of McLean from the partnership under each of the following unrelated assumptions: a. McLean sells his interest to Freedman for $180,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman). •1 Record the admission of Freedman. b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner. •1 Record the admission of Park. c. McLean is paid $93,000 in partnership cash for his equity. •1 Record withdrawal of McLean, where he is paid $93,000 in partnership cash for his equity. d. McLean is paid $144,000 in partnership cash for his equity. •1 Record the withdrawal of…