Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $48,000; Benson, $74,000; and Lau, $128,000. Benson decides to withdraw from the partnership.
Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $48,000; Benson, $74,000; and Lau, $128,000. Benson decides to withdraw from the partnership.
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 35P
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Problem 12-5A (Algo) Partner withdrawal and admission LO P3, P4
[The following information applies to the questions displayed below.]
Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and
Lau, 50%). The partnership's capital balances are as follows: Meir, $48,000; Benson, $74,000; and Lau, $128,000. Benson
decides to withdraw from the partnership.
Problem 12-5A (Algo) Part 2
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% equity. Prepare journal entries to record Rhode's entry into the partnership under each separate assumption:
Rhode invests (a) $83,333; (b) $60,833; and (c) $109,166.
Note: Do not round intermediate calculations.
View transaction list
Journal entry worksheet
☐
2
3
Record the admission of Rhode with an investment of $83,333 for a 25%
interest in the equity.
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Transcribed Image Text:!
Required information
Problem 12-5A (Algo) Partner withdrawal and admission LO P3, P4
[The following information applies to the questions displayed below.]
Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and
Lau, 50%). The partnership's capital balances are as follows: Meir, $48,000; Benson, $74,000; and Lau, $128,000. Benson
decides to withdraw from the partnership.
Problem 12-5A (Algo) Part 2
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% equity. Prepare journal entries to record Rhode's entry into the partnership under each separate assumption:
Rhode invests (a) $83,333; (b) $60,833; and (c) $109,166.
Note: Do not round intermediate calculations.
View transaction list
Journal entry worksheet
☐
2
3
Record the admission of Rhode with an investment of $83,333 for a 25%
interest in the equity.
>
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