Question

Instructions Cummings and Stickel Construction Company, a partnership, is operating a general contracting business Ownership of the company is divided among the partners, Katie Cummings, Julie Stickel, Roy Howson, and Patricia Weber Profits and losses are shared equally. The books are kept on the calendar year basis On August 10, after the business had been in operation for several years, Patricia Weber passed away Mr. Weber wished to sell his wife's interest for $30,000. After the books were closed the partners' capital accounts had credit balances as follows Katie Cummings $90,000 Julie Stickel 60,000 Roy Howson 50,000 Patricia Weber 40,000 Required: 1. Pronare the oriunal and to enter the chockierto Me Maber in name of the econo e interest in the narrorshi

Answer 1

	Journal entries :
	Account Title	Debit	Credit
1	Patricia Weber	$            40,000
	Bank		$               30,000
	Katie Cummings		$                  4,000
	Julie Stickel		$                  3,333
	Roy Hewson		$                  2,667
	(being $ 10,000 divided in the ratio of 6:5:4)
2	Patricia Weber	$            40,000
	Katie Cummings	$              8,000
	Julie Stickel	$              6,667
	Roy Hewson	$              5,333
	Bank		$               60,000
	(being $ 20,000 divided in the ratio of 6:5:4)
3	Patricia Weber	$            40,000
	Julie Stickel		$               40,000
	(being transfer of Patricia Weber's interest to Julie Stickel)