.Chapter 12 Comprehensive problem discussion

CP 12-4 Assume the following information just prior to the withdrawal of Partner X: Assets Liabilities Cash $20,000 Accounts payable $5,000 Inventory 50,000 Partners' Capital X,Capital $10,000 Y ,Capital 20,000 Z, Capital 35,000 65,000 $70,000 $70,000

Required: Prepare journal entries to record the following unrelated scenarios

:1.Partner X sells his interest to new partner T for$25,000.

2.Partner X sells his interest to partner Y for$30,000.

3.Partner X sells his interest and is paid a share of partnership net assets as follows Cash $5,000 Inventory 5,000 Accounts payable(2,000)$8,000 Partner Y receives a 60% share of the partnership interest of X.Partner Z receives 40%.