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PROBLEM 4 (20 points) The statement of financial position of the FAS partnership at December 31, 2018, appears below: Cash $ 400,000 Liabilities Other
PROBLEM 4 (20 points) The statement of financial position of the FAS partnership at December 31, 2018, appears below: Cash $ 400,000 Liabilities Other Assets 800,000 F. Capital A, Capital S, Capital Total Assets $1,200,000 Total Liabilities and Capital $ 80,000 280,000 460,000 380,000 $1,200,000 Partners F, A, and S share profits and losses 20:30:50, respectively. Each question below is independent of the others. Show all computations. b. C. a. Refer to the above information. Assume Partner S retires from the partnership and receives $400,000 for her capital interest. Prepare the journal entry when S retires and no goodwill is recognized? Compute each partner's ending capital. Use bonus method. Refer to the above information. Assume Partner S retires from the partnership and receives $350,000 for her capital interest. Prepare the journal entry when S retires and no goodwill is recognized? Compute each partner's ending capital. Use bonus method. Refer to the above information. Assume Partner S retires from the partnership and receives $400,000 for her capital interest. Prepare the journal entry when S retires and all goodwill is recognized? Compute each partner's ending capital.
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