Question

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, $33,000; Benson, $139,000; and Lau, $178,000. Benson decides to withdraw from the partnership.

1. Prepare the journal entry to record Benson's withdrawal under each independent assumptions. (Do not round intermediate calculations.)

(a) Benson sells her interest to North for $160,000 after North is approved as a partner; (b) Benson gives her interest to a son-in-law, Schmidt, and Schmidt is approved as a partner; (c) Benson is paid $139,000 in partnership cash for her equity; (d) Benson is paid $177,000 in partnership cash for her equity; and (e) Benson is paid $12,500 in partnership cash plus equipment recorded on the partnership books at $32,500 less its accumulated depreciation of $11,600.

Please answer in this format please

Journal entry worksheet 2 3 4 5 Record the withdrawal if Benson sells her interest to North for $160,000 after North is approved as a partner. Note: Enter debits before credits. Transaction General Journal Debit Credit (a)

Answer 1

Refer the below images for the above asked questions, in a detailed way of solution.

solution & Journal entries : Date Transaction Debit credit 139000 particulars Benson, capsital the or To North capital (Being to record admission of North) $ 139000 & 139000 Benson To (Being to Capital al or Schmedt capital record odmission of $139000 schoudt) $1.39000 $139000 Benson To (Being to Benson Capital Alc Dr. Cast Alc record with drawal of with no bonus) $139000 $ 6333 $31667 Bension capital Alc er Meir capitol * Ale or Lao capital ** Ak Dr. To cast Alc (Being to record withdrawal of Benson with bonus) $177000 working : * Meir capital = ($ 177000-$ 139000) * 1/6 = $ 6333 ** lao captat = ($ 177000 - $ 139000) x 516=431667

Transakon credit Debit $ 139000 & 11600 particolars Bension Capital All or Accomolated Dep-equipment All or To Meir, capital * To Lao, capital ** TO Equipment To Cast (Being to record withdrowal of Bension with bonus to old partners) $ 17600 $88000 & 32500 & 12500 Worlling: *[ 139000 a $32100 - $ 1.600 + $ 12500) x 0/6 - $ 17600 ** [$139000 -($ 32900 - $1,600 +$ 12500))x 516 $ $ 88000