Question
1)Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: Floyd $51,000
1)Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows:
Floyd
$51,000
Merriam
19,000
Floyd and Merriam share profits and losses equally. They agreed to dissolve the partnership and start a new one, admitting Ramelow for one-half share in the capital in exchange for land with a market value of $66,000. Which of the following is the correct journal entry to record the introduction of Ramelow as a partner?
2)Simonsen, Paulson, and Richardson are partners in a firm with the following capital account balances:
Simonsen
$40,000
Paulson
180,000
Richardson
120,000
Paulson is retiring from the partnership on December 31, 2018. The profit-and-loss-sharing ratio among Simonsen, Paulson, and Richardson is 1:3:2, in the order given. Paulson is paid $100,000 cash in full compensation for her capital account balance. Which of the following journal entries would the firm record for this transaction? (Round the final answer to the nearest dollar.)
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