Problem

Accounting for withdrawal of a partnerJoseph, John, and Judith each have a $60,000 capital...

Accounting for withdrawal of a partner

Joseph, John, and Judith each have a $60,000 capital balance. Joseph is retiring from the business. The partners agree to revalue the assets at current market value. A realestate appraiser values the land at $126,000 (book value is $90,000). The profit-andloss ratio is 1:2:3.

Requirements

1. Journalize the revaluation of the land on July 31.


2. Journalize the payment of $66,000 to Joseph upon his retirement the same day.

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