P12-35B

B Accounting for withdrawal of Partnerdhips uns-Liang Oriental Design is a partiership owned by three individuals to Liang. At December 31. 201G the firm has che following balance shert. a partner o- The partners share profits and losses in the Learning Objective 5 ratio of 30% to Ho, 40% to Kung, and ber 31, Ho withdraws irors the parneship 2 Motes Payable $8,000 CR On Decem Assets iabilities 36.000 Cash Accounts Receivable, Net Merchandise Inventory Equipment, Net caurs Payable 104,000 Partners' Equity 102,000 Ho, Capital Kung. Capital Liang, Capital Total Partners Equity 2e,000 46,000 48,000 122,000 5 226,000 Total Assets 5 226,000 Total Liabilities and Partners' Equity Requirements Record Ho's withdrawal from the partnership under the following independent plans l. In a personal transaction, Ho sells her equity to Wong, who pays Ho $120,000 for her interest. Kung and Liang agree to accept Wong as a partner. The partnership pays Ho cash of $20,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest. 2. 3. The partnership pays Ho $55,000 for her book equity 1. The partnership pays Ho $8,000 for her book equity. iu liquidation of a partnership Learning Objec 12-36R A