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 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.

Journal entry worksheet

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.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(a)

Journal entry worksheet

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.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(b)

Journal entry worksheet

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(c)

Journal entry worksheet

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(d)

Journal entry worksheet

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.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(e)