Acc225 Fundamentals of Accounting Principles: P12-4A Goering, Zarcus, and Schmit are partners

Acc225 Fundamentals of Accounting Principles

P12-4A Partner Withdrawal and Admission
Part 1.
Goering, Zarcus, and Schmit are partners and share income and loss in a 3:2:5 ratio. the partnerships capital balances are as follows: Goering, $84,000, Zarcus, $69,000 and Schmit, $147,000. Zarcus decides to withdrawal from the partnership. and the partners agree to not have the assets revalued upon Zarcus's retirement. Prepare journal entries to record Zarcus's February 1 withdrawal from the partnership under each of the following separate assumptions. Zarcus a) sells her interest to Getz for $80,000 after Goering and Schmit approve the entry of Getz as partner. b) Gives her interest to a son-in-law Swanson, and thereafter Goering and Schmit accept Swanson as a partner. c) is paid $69,000 in partnership cash for her equity. d) is paid $107,000 in partnership cash for her equity. and e) is paid $15,000 in partnership cash plus equipment recorded on the partnership books at $35,000 less its accumulated depreciation of $11,600.

Part 2.
Assume that Zarcus does not retire from the partnership described in part 1. instead, Ford is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Ford's entry into the partnership under each of the following separate assumptions. Ford invests a. 100,000 b. 74,000 c. 131,000
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