QS 12-8 Partner withdrawal LO P4

Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio. On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,300; Cruz, $2,100; and Perez, $1,500. Prepare journal entries to record Perezs withdrawal under each of the following separate situations: Perez is paid for her equity using partnership cash of (1) $1,500; (2) $2,050; and (3) $850.

Record the retirement of Perez assuming that she is paid $1,500 for her equity.

Record the retirement of Perez assuming that she is paid $2,050 for her equity.

Record the retirement of Perez assuming that she is paid $850 for her equity.

equired information

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 1:4:5 ratio. The partnership's capital balances are as follows: Meir, $43,000; Benson, $179,000; and Lau, $228,000. Benson decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Benson's retirement.

Problem 12-5A Part 1

Prepare the journal entry to record Benson's withdrawal from the partnership under each of the following independent assumptions. (Do not round intermediate calculations.) Benson (a) sells her interest to North for $160,000 after Meir and Lau approve the entry of North as a partner; (b) gives her interest to a son-in-law, Schmidt, and thereafter Meir and Lau accept Schmidt as a partner; (c) is paid $179,000 in partnership cash for her equity; (d) is paid $217,000 in partnership cash for her equity; and (e) is paid $16,000 in partnership cash plus equipment recorded on the partnership books at $36,000 less its accumulated depreciation of $11,600.

Record the withdrawal of Benson sells her interest to North for $160,000 after Meir and Lau approve the entry of North as a partner.

Record the withdrawal of Benson on the assumption that she gives her interest to a son-in-law, Schmidt and thereafter Meir and Lau accept Schmidt as a partner.

Record the withdrawal of Benson on the assumption that she is paid $179,000 in partnership cash for her equity.

Record the withdrawal of Benson on the assumption that she is paid $217,000 in partnership cash for her equity.

Record the withdrawal of Benson on the assumption that she is paid $16,000 in partnership cash plus equipment recorded on the partnership books at $36,000 less its accumulated depreciation of $11,600 for her equity.

Required information

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 1:4:5 ratio. The partnership's capital balances are as follows: Meir, $43,000; Benson, $179,000; and Lau, $228,000. Benson decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Benson's retirement.

Problem 12-5A Part 2

Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhodes entry into the partnership under each of the following separate assumptions: Rhode invests (a) $150,000; (b) $109,500; and (c) $196,500. (Do not round your intermediate calculations.)

Record the admission of Rhode with an investment of $150,000 for a 25% interest in the equity.

Record the admission of Rhode with an investment of $109,500 for a 25% interest in the equity.

Record the admission of Rhode with an investment of $196,500 for a 25% interest in the equity.