Question
E12.11 (LO 6) AP Julie Lane, Sara Miles, and Amber Noll have capital balances of $50,000, $40,000, and $30,000, respectively. The profit and loss ratio
E12.11 (LO 6) AP Julie Lane, Sara Miles, and Amber Noll have capital balances of $50,000, $40,000, and $30,000, respectively. The profit and loss ratio is 5:3:2. Assume Noll withdraws from the partnership on December 31 of the current year under each of the following independent conditions:
- Miles agrees to purchase all of Noll's equity by paying $35,000 cash from her personal assets.
- Noll withdraws $30,000 cash from the partnership.
- Noll withdraws $35,000 cash from the partnership.
Instructions
a. Journalize the withdrawal of Noll under each of the above assumptions.
b. Determine, he bolts is tepaters capital accounts and in total parners equiy after Noll has
E12.11 (LO 6) AP Julie Lane, Sara Miles, and Amber Noll have capital balances of $50,000, $40,000, and $30,000, respectively. The profit and loss ratio is 5:3:2. Assume Noll withdraws from the partnership on December 31 of the current year under each of the following independent conditions:
- Miles agrees to purchase all of Noll's equity by paying $35,000 cash from her personal assets.
- Noll withdraws $30,000 cash from the partnership.
- Noll withdraws $35,000 cash from the partnership.
Instructions
a. Journalize the withdrawal of Noll under each of the above assumptions.
b. Determine, he bolts is tepaters capital accounts and in total parners equiy after Noll has
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Modern Advanced Accounting In Canada
Authors: Hilton Murray, Herauf Darrell
7th Edition
1259066487, 978-1259066481
