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Mark ,Johnny and Lucas are existing partners with capital balances as of January 1, 2020: Mark 100,000 Johnny 150,000 Lucas 200,000 They share profits and
Mark ,Johnny and Lucas are existing partners with capital balances as of January 1, 2020:
Mark
100,000
Johnny
150,000
Lucas
200,000
They share profits and losses on the ratio of 5:3:2, respectively. On September 1, 2020, Mark withdraw from the partnership. Partners agreed that at the time of withdrawal, assets should be revalued to a net increase of $20,000. The partnership net income for eight months is $140,000. Partners agreed to pay Mark for $195,000 for this interest and remaining partners' capital accounts. Immediately after Mark's withdrawal, what are the capital balances of Johnny and Lucas, respectively?
Mark
100,000
Johnny
150,000
Lucas
200,000
They share profits and losses on the ratio of 5:3:2, respectively. On September 1, 2020, Mark withdraw from the partnership. Partners agreed that at the time of withdrawal, assets should be revalued to a net increase of $20,000. The partnership net income for eight months is $140,000. Partners agreed to pay Mark for $195,000 for this interest and remaining partners' capital accounts. Immediately after Mark's withdrawal, what are the capital balances of Johnny and Lucas, respectively?
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
13th edition
134472144, 978-0134472140
