Required information

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

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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.)

Journal entry worksheet

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(a)

Journal entry worksheet

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(b)

Journal entry worksheet

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
(c)