Elena Oprescu, Xiru Wang, Reg Miller, and Kendra Batty have capital balances of $25,000, $30,000, $20,000, and $20,000, respectively. They share income or loss on a 4:4:1:1 basis and Oprescu and Wang each receive a monthly salary allowance of $8,000. Xiru Wang decided to leave the partnership on March 31, 2015, at which point the partnership had earned net income of $400,000.
a. Determine the division of income among the four partners.
b. Provide the journal entries to close the net income and withdrawals to the individual
partner equity accounts on March 31, 2015.
c. Determine the balance in Wang's capital account after the March 31, 2015, closing entries have been recorded.
d. Provide the journal entry for Wang's departure on March 31, 2015, assuming the partnership offers Wang $120,000.