Alan Norwood is currently a senior associate with the law firm of Butler, Stans, and Madden (BSM). His compensation currently includes a salary of $155.000, and benefits valued at $5,000. BSM is considered among the strongest of local forms, with a cts of $10,000,000 $2,000,000, and accounts receivables $8,000,000), liabilities of $7,500,000, and 11 partners. Alan anticipates admission to the partnership on July 1 of this year. The senior managing partner, Jane following: te has had preliminary discussions with Alan in which the senior partner proposed the 1. A5% interest in BSM capital and profits in recognition of Alan's commitment to the firm and in exchange for a capital investment by Alan of $150,000. This 5% interest would be cured from the other partners Alan's compensation will consist of a monthly withdrawal of $13,000 and valued at $5,000 Monty withdrawa r iateur profits, but any road profts will be distributed as a bonus to Alanter the end of each partnership year 2. On March 1, only one month prior to Alan's final negotiation meeting for entry into the partnership, Mary, one of the junior associates, discreetly normed Alan that the form was drawing up documents for Hugh Stars' retirement Hugh has a n interest in the form's capital and profits with a book value of $125,000. The partners have agreed upon a $75,000 cash settlement of the interest held by M Stans. Of the other 10 partners, numbers 1 through hold 10% interests, and number 10 holds a 5% interest Assume Me Stars retires with his $75,000 settlement, and Alanis admitted to the partnership as proposed Prepare journal entries to record the retirement and admission (Round answers to deal places, 5.125. Credit account totes are automatically indeed when the amount entered. Do not inden manually. If he entry required select entry for the account titles and enter for the amounts) Alan Norwood is currently a senior associate with the law firm of Butler, Stans, and Madden (BSM). His compensation currently includes a salary of $155.000, and benefits valued at $5,000. BSM is considered among the strongest of local forms, with a cts of $10,000,000 $2,000,000, and accounts receivables $8,000,000), liabilities of $7,500,000, and 11 partners. Alan anticipates admission to the partnership on July 1 of this year. The senior managing partner, Jane following: te has had preliminary discussions with Alan in which the senior partner proposed the 1. A5% interest in BSM capital and profits in recognition of Alan's commitment to the firm and in exchange for a capital investment by Alan of $150,000. This 5% interest would be cured from the other partners Alan's compensation will consist of a monthly withdrawal of $13,000 and valued at $5,000 Monty withdrawa r iateur profits, but any road profts will be distributed as a bonus to Alanter the end of each partnership year 2. On March 1, only one month prior to Alan's final negotiation meeting for entry into the partnership, Mary, one of the junior associates, discreetly normed Alan that the form was drawing up documents for Hugh Stars' retirement Hugh has a n interest in the form's capital and profits with a book value of $125,000. The partners have agreed upon a $75,000 cash settlement of the interest held by M Stans. Of the other 10 partners, numbers 1 through hold 10% interests, and number 10 holds a 5% interest Assume Me Stars retires with his $75,000 settlement, and Alanis admitted to the partnership as proposed Prepare journal entries to record the retirement and admission (Round answers to deal places, 5.125. Credit account totes are automatically indeed when the amount entered. Do not inden manually. If he entry required select entry for the account titles and enter for the amounts)
