On December 31, 2024, capital balances of the partners in Sunland Maple are R. Lee $48,000; S. Hall $37,330; and T. Young $26,670. The partners share profit in a 5:3:2 ratio, respectively. Young decides that she is going to leave the partnership. Journalize the withdrawal of Young assuming: (a) Your answer is correct. Lee and Hall both pay Young $18,130 from their personal assets to each receive 50% of Young's equity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles Dec. 31 T.Young, Capital R. Lee, Capital S. Hall, Capital Debit 26670 Credit 13335 13335
On December 31, 2024, capital balances of the partners in Sunland Maple are R. Lee $48,000; S. Hall $37,330; and T. Young $26,670. The partners share profit in a 5:3:2 ratio, respectively. Young decides that she is going to leave the partnership. Journalize the withdrawal of Young assuming: (a) Your answer is correct. Lee and Hall both pay Young $18,130 from their personal assets to each receive 50% of Young's equity. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles Dec. 31 T.Young, Capital R. Lee, Capital S. Hall, Capital Debit 26670 Credit 13335 13335
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Help me Solve (b)
Transcribed Image Text:(b)
Lee and Hall both pay Young $12,800 from their personal assets to each receive 50% of Young's equity. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is
required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles
Dec. 31
Accounts Payable
Accounts Receivable
eTextbo Cash
Save for Lat
No Entry
R. Lee, Capital
R. Lee, Drawings
S. Hall, Capital
S. Hall, Drawings
T. Young, Capital
T. Young, Drawings
Debit
Credit
Attempts: 0 of 3 used Submit Answer
Transcribed Image Text:Current Attempt in Progress
On December 31, 2024, capital balances of the partners in Sunland Maple are R. Lee $48,000; S. Hall $37,330; and T. Young $26,670.
The partners share profit in a 5:3:2 ratio, respectively. Young decides that she is going to leave the partnership. Journalize the
withdrawal of Young assuming:
(a)
Your answer is correct.
Lee and Hall both pay Young $18,130 from their personal assets to each receive 50% of Young's equity. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is
required, select "No Entry" for the account titles and enter O for the amounts.)
Date
Dec. 31
Account Titles
T.Young, Capital
R. Lee, Capital
S. Hall, Capital
eTextbook and Media
Debit
26670
Credit
13335
13335
Attempts: 1 of 3 used
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