S. No. | Particulars | Debit | Credit |
a | Mclean's Capital Dr | $73,000.00 | |
To Freedman's Capital | $73,000.00 | ||
(Being interest of melean sold to Freedman and freedman's admitted new partner) | |||
b | Mclean's Capital Dr | $73,000.00 | |
To Park's Capital | $73,000.00 | ||
(Being Mclean withdrawal from partnership and Park's admission in partnership recorded) | |||
c | Mclean's Capital Dr | $73,000.00 | |
To Cash | $73,000.00 | ||
(Being cash paid to Mclean's on withdrawn from partnership) | |||
d-1 | Gale's Capital A/c Dr ($61,000*3/8) | $22,875.00 | |
Lux Capital A/c Dr ($61,000*5/8) | $38,125.00 | ||
To Mclean's Capital ($134,000 - $73,000) | $61,000.00 | ||
(Being shortfall in mclean's capital transferred from remaining partners) | |||
d2 | Mclean's Capital Dr | $134,000.00 | |
To Cash | $134,000.00 | ||
(Being cash paid to Mclean's on withdrawl from partnership) | |||
e1 | Mclean's Capital Dr ($73,000 - $29,250 - $32000) | $11,750.00 | |
To Gale's Capital ($11,750*3/8) | $4,406.25 | ||
To Lux's Capital ($11,750*5/8) | $7,343.75 | ||
(Being excess in mclean's capital transferred to remaining partners) | |||
e2 | Mclean's Capital Dr | $61,250.00 | |
Accumulated Depreciation Dr | $85,000.00 | ||
To Cash | $29,250.00 | ||
To Machinery | $117,000.00 | ||
(Being cash and machinery given to Mclean on withdrawn from partnership) |
Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows:...
Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $93,000; McLean, $87,000; and Lux, $156,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare General Journal entries to record the May 1, 2020, withdrawal of McLean from the partnership under each of the following unrelated assumptions: a. McLean sells his interest to Freedman for $177,000 after Gale and Lux approve the entry of...
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Problem 11-6A Withdrawal of a partner LO4 CHECK FIGURES: d. Dr Gale, Capital: $23,625; e. Cr Gale, Capital: $3,656.25 Gale, McLean, and Lux are partners of Burgers and Brew lows: Gale, $84,000; McLean, $69,000; and Lux, $147,000. The partners share pr 3:2:5 ratio. McLean decides to withdraw fro record the May 1, 2017, withdrawal of McLean fro unrelated assumptions: Company with capital balances as fol- ofit and losses in a m the partnership. Prepare general journal...
On April 1, 2019, Guy Comeau and Amelle Lavol formed a partnership in Ontarlo. Contribution Profit sharing Comeau Lavoi $321,800 cash $22e, eee land $140, see building $161,300 salary allowance 5% of original 5% of original capital investments capital investments 40% of remaining 60% of remaining $122,700 Cash withdrawal March 20, 2020 Net Income during the year was $616,000 and was in the Income Summary account. On April 1, 2020 Travis Roberts Invested $131,100 and was admitted to the partnership...
On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $283,000 cash and $366,000 of equipment, respectively. The partnership also assumed responsibility for a $43,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $153,000, both are to receive an annual Interest allowance of 10% of their original capital Investments, and any remaining profit or loss is...
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On June 1, 2020, Jill Bow and Aisha Adams formed a partnership to open a gluten-free commercial bakery, contributing $298,000 cash and $396,000 of equipment, respectively. The partnership also assumed responsibility for a $58,000 note payable associated with the equipment. The partners agreed to share profits as follows: Bow is to receive an annual salary allowance of $168,000, both are to receive an annual interest allowance of 5% of their original capital investments, and any remaining profit or loss is...
Diaz Company owns a machine that cost $126,300 and has accumulated depreciation of $93,900. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. 1. The machine needed extensive repairs and was not worth repairing Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $16,100 cash. 3. Diaz sold the machine for $32,400 cash. 4. Diaz sold the machine for $41,500 cash. View transaction list Journal entry...
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 (in percents: Meir, 10%; Benson, 40%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $28,000; Benson, $119,000; and Lau, $153,000. Benson decides to withdraw from the partnership. Problem 12-5A Part 1 1. Prepare the journal entry to record Benson's withdrawal under each...
Italian Stallion has the following transactions during the year related to stockholders' equity 1 Issues 4,700 shares of no-par common stock for $16 per share. February May 15 Issues 300 shares of $10 par value, 6% preferred stock for $13 per share. October 1 Declares a cash dividend of $0.60 per share to all stockholders of record (both common and preferred) on October 15 October 15 Date of record. October 31 Pays the cash dividend declared on October 1. Required:...
Exercise 15-7 Sales-type lease with no selling profit; lessor [LO15-2] Edison Leasing leased high-tech electronic equipment to Manufacturers Southern on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $110,623. (EV of $1. PV of S1. FVA of $1, PVA of $1. EVAD of $1 and PVAD of $) (Use appropriate factor(s) from the tables provided.) Related Information Lease term Quarterly rental payments Economic life of asset Fair value of asset Implicit interest rate (Also...