Problem 12-5A Partner withdrawal and admission LO P3, P4

[The following information applies to the questions displayed below.] Meir, Benson, and Lau are partners and share income and loss in a 3:2:5 ratio (in percents: Meir, 30%; Benson, 20%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $88,000; Benson, $59,000; and Lau, $153,000. Benson decides to withdraw from the partnership.

Problem 12-5A Part 1

1. Prepare the journal entry to record Benson's withdrawal under each independent assumptions. (Do not round intermediate calculations.) (a) Benson sells her interest to North for $160,000 after North is approved as a partner; (b) Benson gives her interest to a son-in-law, Schmidt, and Schmidt is approved as a partner; (c) Benson is paid $59,000 in partnership cash for her equity; (d) Benson is paid $97,000 in partnership cash for her equity; and (e) Benson is paid $15,000 in partnership cash plus equipment recorded on the partnership books at $35,000 less its accumulated depreciation of $11,600.

Record the admission of Rhode with an investment of $100,000 for a 25% interest in the equity.

Record the admission of Rhode with an investment of $73,000 for a 25% interest in the equity.

Record the admission of Rhode with an investment of $131,000 for a 25% interest in the equity.