Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AC Partnership had the following linformation on January 1, 201s Profit $60,000 On that date, Partner C decided to withdraw from the partnership. Answer the

image text in transcribed
AC Partnership had the following linformation on January 1", 201s Profit $60,000 On that date, Partner C decided to withdraw from the partnership. Answer the following Independen cases 19. Assume that Partner B uses $22,000 of her personal funds to purchase Partner C's interest in the partnership in a private transaction. How would this transaction be recorded by the partnership a. Debit B-Capital $22,000, Credit C-Capital $22,000. b. Debit C-capital S22.000, credit B-Capital S22.000. c. Debit B-Capital $30,000, Credit C-Capital $30,000. d. Debit C-Capital $30,000, Credit B-Capital $30,000. 20. Assume that Partner C sells her recorded using the bonus method? interest to the partnership for $25,000. How would this transaction be a. Debit C-Capital $30,000, Credit A-Capital $20,000, Credit B-Capital $10,000. b. Debit C-Capital $30,000, Credit Cash $25,000, Credit A-Capital $2,500, Credit B-Capital $2,500. d. Debit c Capital 30,000, redit -aital $15,000 Credit B Capital $15,000 21. Assume that Partner C sells her interest to the Partnership for $32,000. Using the goodwill method, what would be the goodwill traceable to the entire Partnership and Partner A's share of that goodwill, respectively? a. b. C. d. e. Entire Partnership A's Share $3,200 $4,000 $5,000 $8,000 $10,000 $10,000 $2,000 $8,000 $800 $4,000 End of Three Items

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health And Safety Audit An External Audit Perspective

Authors: Abdel Rahman Mansour

1st Edition

6139899648, 978-6139899647

More Books

Students also viewed these Accounting questions