E12-20 Accounting for withdrawal of a partner The O'Hara, Parness, and Lincoln partnership balance sheet reports capital of $50,000 for O'Hara, $125,000 for Parness, and $25,000 for Lincoln. O'Hara is withdraw- ing from the firm. The partners have shared profits and losses in the ratio of 1/2 to O'Hara, 1/4 to Parness, and 1/4 to Lincoln. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his or her partners' equity. Journalize the withdrawal of O'Hara. Lea P12-26A Accounting for the admission of a new partner George, Murphy, and Lincoln, a partnership, is considering admitting Thorton as a new partner. On July 31, 2018, the capital accounts of the three existing partners and their profit-and-loss-sharing ratio are as follows: 4. Li Capital George Murphy Lincoln $ 43,500 87,000 130,500 Profit-and-Loss-Sharing % 20% 25% 55% Requirements Journalize the admission of Thorton as a partner on July 31 for each of the following independent situations: 1. Thorton pays Lincoln $174,000 cash to purchase Lincoln's interest. 2. Thorton contributes $87,000 to the partnership, acquiring a 1/4 interest in the business 3. Thorton contributes $87,000 to the partnership, acquiring a 1/6 interest in the business 4. Thorton contributes $87,000 to the partnership, acquiring a 1/3 interest in the business. Lea P12-27A Accounting for withdrawal of a partner Ho Kim-Ling Oriental Design is a partnership owned by three individuals. The part ners share profits and losses in the ratio of 30% to Ho, 40% to Kim, and 30% to Ling, At December 31, 2018, the firm has the following balance sheet. On December 31, Ho withdraws from the partnership. 2.N $ 87,000 Assets Cash Accounts Receivable, Net Merchandise Inventory Equipment, Net HO-KIM-LING ORIENTAL DESIGN Balance Sheet December 31, 2018 Liabilities $ 10,000 Accounts Payable 12,000 94,000 Partners' Equity 95,000 Ho, Capital Kim, Capital Ling, Capital Total Partners' Equity $ 211,000 Total Liabilities and Partners' Equity 35,000 47.000 42,000 124,000 Total Assets hapter 12 Requirements Record Ho's withdrawal from the partnership under the following independent plans: 1. In a personal transaction, Ho sells her equity to Wei, who pays Ho $120,000 for her interest. Kim and Ling agree to accept Wei as a partner. 2. The partnership pays Ho cash of $10,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest. 3. The partnership pays Ho $65,000 for her book equity 4. The partnership pays Ho $25,000 for her book equity