Gale, McLean, and Lux are partners with capital balances as follows: Gale, $84,000; McLean, $69,000; and Lux,

Question:

Gale, McLean, and Lux are partners with capital balances as follows: Gale, $84,000; McLean, $69,000; and Lux, $147,000. The partners share incomes and losses in a 3:2:5 ratio. McLean decides to withdraw from the Prepare General Journal entries to record the May 1, 2014, withdrawal of McLean from the under each of the following unrelated assumptions:
a. McLean sells his interest to Freedman for $168,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman).
b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner.
c. McLean is paid $69,000 in cash for his equity.
d. McLean is paid $132,000 in cash for his equity.
e. McLean is paid $27,250 in cash plus machinery that is recorded on the books at $115,000 less accumulated depreciation of $83,000.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...