662 chapter 12 Learning Objective s P12-27A Accounting for withdrawal of a partner Hu-Kuo-Lo Oriental Design is a partnership owned by three individuals. The share profits and losses in the ratio of 30% to Hu,40% to Kio, and 30%to December 31, 2016, the firm has the following balance sheet. On December 31, withdraws from the partnership. 2 Notes Payable $18,000 CR HU-KUO-LO ORIENTAL DESIGN Balance Sheet December 31, 2016 Assets Liabilities Cash Accounts Recevable, Net Merchandise Inventory Equipment, Net s 17,000 Accounts Payable 81,000 14,000 96,000 75,000 Hu, Capital Partners' Equity Kuo, Capital Lo, Capital Total Partners Equity 33,000 40.000 48,000 121,000 S 202,000 Total Assets 202,000 Total Liabilities and Partners' Equity Requirements Record Hu's withdrawal from the partnership under the following independent plans: 1. In a personal transaction, Hu sells her equity to Wong, who pays Hu $140.000 for her interest. Kuo and Lo agree to accep 2. ot Wong as a partner. The partnership pays Hu cash of $15.000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest 3. The partnership pays Hu $45,000 for her book equity 4. The partnership pays Hu $18,000 for her book equity P1)-28A Acceuntine for the linuidation of a nartnershin 662 chapter 12 Learning Objective s P12-27A Accounting for withdrawal of a partner Hu-Kuo-Lo Oriental Design is a partnership owned by three individuals. The share profits and losses in the ratio of 30% to Hu,40% to Kio, and 30%to December 31, 2016, the firm has the following balance sheet. On December 31, withdraws from the partnership. 2 Notes Payable $18,000 CR HU-KUO-LO ORIENTAL DESIGN Balance Sheet December 31, 2016 Assets Liabilities Cash Accounts Recevable, Net Merchandise Inventory Equipment, Net s 17,000 Accounts Payable 81,000 14,000 96,000 75,000 Hu, Capital Partners' Equity Kuo, Capital Lo, Capital Total Partners Equity 33,000 40.000 48,000 121,000 S 202,000 Total Assets 202,000 Total Liabilities and Partners' Equity Requirements Record Hu's withdrawal from the partnership under the following independent plans: 1. In a personal transaction, Hu sells her equity to Wong, who pays Hu $140.000 for her interest. Kuo and Lo agree to accep 2. ot Wong as a partner. The partnership pays Hu cash of $15.000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest 3. The partnership pays Hu $45,000 for her book equity 4. The partnership pays Hu $18,000 for her book equity P1)-28A Acceuntine for the linuidation of a nartnershin