Question 4

The statement of financial position of the FAS partnership at December 31, 2018, appears below:

Partners F, A, and S share profits and losses 30:20:50, respectively. Each question below is independent of the others.

Refer to the above information. Assume Partner S retires from the partnership and receives $420,000 for her capital interest. Prepare the journal entry when S retires and a bonus is recognized.

Please Show computations.

Cash Other Assets $ 400,000 800,000 Liabilities F, Capital A, Capital S, Capital Total Liabilities and Capital 80,000 280,000 460,000 380,000 $1.200.000 Total Assets $1.200.000