2 Homework Problems Required information The following information applies to th

Question

2 Homework Problems Required information The following information applies to the questions displayed below Meir, Benson, and Lau are partners and share income and loss in a 325 ratio The partnership's capital balances are as follows: Meir, $168,000: Benson, $138,000; and Lau, $294,000. Benson decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Benson's retirement. 1. Prepare the journal entry to record Benson's withdrawal from the partnership under each of the following independent assumptions Benson (at sells her interest to North for $160.000 after Meir and Lau approve the entry of North as a partner (ib) gives her interest to a as a partner, (g is poid $138,000 in partnership cash for her equity: (d cash tor her equity: and (e) is paid $30,000 in partnership cash plus equipment recorded on the is paid $214,000 in pa partnership books at $70,000 less its accumulated depreciation of $23.200

Explanation / Answer

Transaction General Journal Dr Cr a) Bensen's Capital $138,000 North's Capital $138,000 b) Bensen's Capital $138,000 Schmidt's Capital $138,000 c) Bensen's Capital $138,000 Cash $138,000 d) Bensen's Capital $214,000 Cash $214,000 Meir's Capital (76000*3/8) 28500 Lau's Capital (76000*5/8) 47500 Bensen's Capital 76000 (excess paid is adjusted 214000-138000= $76000) e) Bensen's Capital $76,800 Cash $30,000 Equipment (70000-23200) 46800 If any doubt please comment

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