Part 1. Meir, Zarcus, and Ross are partners and share income and loss in a 1:4:5 rat...

Part 1. Meir, Zarcus, and Ross are partners and share income and loss in a 1:4:5 ratio. The partnership’s

capital balances are as follows: Meir, $43,000; Zarcus, $179,000; and Ross, $228,000. Zarcus

decides to withdraw from the partnership, and the partners agree to not have the assets revalued upon

Zarcus’s retirement. Prepare journal entries to record Zarcus’s February 1 withdrawal from the partnership

under each of the following separate assumptions: Zarcus (a) sells her interest to Garcia for

$160,000 after Meir and Ross approve the entry of Garcia as a partner; (b) gives her interest to a sonin-

law, Fields, and thereafter Meir and Ross accept Fields as a partner; (c) is paid $179,000 in partnership

cash for her equity; (d) is paid $215,000 in partnership cash for her equity; and (e) is paid

$20,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated

depreciation of $23,200.

Part 2. Assume that Zarcus does not retire from the partnership described in Part 1. Instead, Potter is

admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Potter’s

entry into the partnership under each of the following separate assumptions: Potter invests (a) $150,000;

(b) $110,000; and (c) $196,000.