6. The CPA partners of Tan, Ullman & Valdez LLP shared net income and losses 25%, 35%, and 40%, respectively. On January 31, 2006, by mutual consent of the partners, Julio Valdez withdrew from the partnership, receiving $162,000 for his $150,000 capital account balance. The preferable journal entry (explanation omitted) for the partnership on January 31, 2006, is:

Transcribed Image Text:

(a) Valdez, Capital Tan, Capital ($12,000 25/60) Ullman, Capital ($12,000 35/60) 150,000 5,000 7,000 Cash 162,000 (b) Valdez, Capital 162,000 Goodwill 12,000 Valdez, Capital ($162,000 - $150,000) 12,000 Cash 162,000 (c) Goodwill ($12,000+ 0.40) 30,000 Valdez, Capital 162,000 Tan, Capital ($30,000 x 0.25) 7,500 Ullman, Capital ($30,000 0.35) 10,500 Valdez, Capital ($30,000 0.40) Cash 12,000 162,000 (d) Valdez, Capital ($12,000 0.40) 4,800 Valdez, Capital ($150,000 - $4,800) 145,200 Tan, Capital ($12,000 x 0.25) Ullman, Capital ($12,000 x 0.35) Loss on Withdrawal of Partner Cash 3,000 4,200 4,800 162,000