Answered step by step
Verified Expert Solution
Question
1 Approved Answer
nts 1 Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $100,000; McLean, $99,000; and Lux, $162,000.
nts 1 Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $100,000; McLean, $99,000; and Lux, $162,000. 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 $183,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman). View transaction list Journal entry worksheet Record the admission of Freedman. Note: Enter debits before credits Date May 01, 2020 General Journal Debit Credit 1 ints b. McLean gives his Interest to a son-in-law, Park. Gale and Lux accept Park as a partner. View transaction list Journal entry worksheet < 1 Record the admission of Park. Note: Enter debits before credits. Date May 01, 2020 General Journal Debit Credit Record entry Clear entry View general journal 1 10 points c. McLean is paid $99,000 In partnership cash for his equity. View transaction list Journal entry worksheet < 1 Record withdrawal of McLean, where he is paid $99,000 in partnership cash for his equity. Note: Enter debits before credits. Date May 01, 2020 General Journal Debit Credit Record entry Clear entry View general journal 1 10 points d. McLean is paid $147,000 in partnership cash for his equity. View transaction list Journal entry worksheet < Record the withdrawal of McLean. Note: Enter debits before credits. Date May 01, 2020 General Journali Debit Credit Record entry Clear entry View general journal 1 10 points e. McLean is paid $42,250 in partnership cash plus machinery that is recorded on the partnership books at $130,000 less accumulated depreciation of $98,000. (Round final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 Record the withdrawal of McLean. Note Enter debits before credits. Date May 01, 2020 General Journal Debit Credit Record entry Clear entry View general journal
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started