Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $92,000; McLean, $85,000; and Lux, $155,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare General Journal entries to record the May 1, 2020, withdrawal of McLean from the partnership under each of the following unrelated assumptions:

a. McLean sells his interest to Freedman for $176,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman).

Journal entry worksheet

• Record the admission of Freedman.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 01, 2020

b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner.

Journal entry worksheet

• Record the admission of Park.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 01, 2020

c. McLean is paid $85,000 in partnership cash for his equity.

Journal entry worksheet

• Record withdrawal of McLean, where he is paid $85,000 in partnership cash for his equity.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 01, 2020

d. McLean is paid $140,000 in partnership cash for his equity.

Journal entry worksheet

• Record the withdrawal of McLean.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 01, 2020

e. McLean is paid $35,250 in partnership cash plus machinery that is recorded on the partnership books at $123,000 less accumulated depreciation of $91,000. (Round final answers to 2 decimal places.)

Journal entry worksheet

• Record the withdrawal of McLean.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
May 01, 2020