Gibbs, Cook, and Chan are partners and share income and loss in a 5:1:4 ratio. The partnership’s capital balances are as follows: Gibbs, $606,000; Cook, $148,000; and Chan, $446,000. Gibbs decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Gibbs’s retire¬ ment. Prepare journal entries to record Gibbs’s April 30 withdrawal from the partnership under each of the following separate assumptions: Gibbs

(a) sells her interest to Brady for $250,000 after Cook and Chan approve the entry of Brady as a partner;

(b) gives her interest to a daughter-in-law. Cannon, and thereafter Cook and Chan accept Cannon as a partner;

(c) is paid $606,000 in partnership cash for her equity;

(d) is paid $350,000 in partnership cash for her equity; and

(e) is paid $200,000 in partnership cash plus manu¬ facturing equipment recorded on the partnership books at $538,000 less its accumulated depreciation of $336,000.

Part 2. Assume that Gibbs does not retire from the partnership described in Part 1. Instead, Chip is admitted to the partnership on April 30 with a 20% equity. Prepare journal entries to record the entry of Brise under each of the following separate assumptions: Chip invests

(a) $300,000;

(b) $196,000; and

(c) $426,000.

Lasure, Ramirez, and Toney, who share income and loss in a 2:1 ;2 ratio, plan to liquidate their partnership.At liquidation, their balance sheet appears as follows.

Required Prepare journal entries for

(a) the sale of equipment,

(b) the allocation of its gain or loss,

(c) the payment of liabilities at book value, and

(d) the distribution of cash in each of the following separate cases:
Equipment is sold for (1) $650,000; (2) $530,000; (3) $200,000 and any partners with capital deficits pay in the amount of their deficits; and (4) $150,000 and the partners have no assets other than those invested in the partnership. (Round amounts to the nearest dollar.)

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LASURE, RAMIREZ, AND TONEY Balance Sheet January 18 Assets Liabilities and Equity Cash $348,600 Accounts payable $342,600 Equipment 617,200 Lasure, Capital 300,400 Ramirez, Capital 195,800 Toney, Capital 127,000 Total assets $965,800 Total liabilities and equity $965,800