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1. Gibbs, Mier, and Hill are partners and share in...

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Question

1. Gibbs, Mier, and Hill are partners and share income and loss in a 5:1:4 ratio. The partnership?s capital balances are as follows: Gibbs, $303,000; Mier, $74,000; and Hill, $223,000. Gibbs decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Gibbs?s retire- ment. Prepare journal entries to record Gibbs?s April 30 withdrawal from the partnership under each of the following separate assumptions: Gibbs (a) sells her interest to Brady for $250,000 after Mier and Hill ap- prove the entry of Brady as a partner; (b) gives her interest to a daughter-in-law, Cannon, and thereafter Mier and Hill accept Cannon as a partner; (c) is paid $303,000 in partnership cash for her equity; (d) is paid $175,000 in partnership cash for her equity; and (e) is paid $100,000 in partnership cash plus manufacturing equipment recorded on the partnership books at $269,000 less its accumulated depreciation of $168,000.

 

Paper#9375 | Written in 18-Jul-2015

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