Huang-Kong-Lung Oriental Design is a partnership owned by three individuals. The partners share profits and losses in

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Huang-Kong-Lung Oriental Design is a partnership owned by three individuals. The partners share profits and losses in the ratio of 30% to Huang, 40% to Kong, and 30% to Lung. At December 31, 2018, the firm has the following balance sheet. On December 31, Huang withdraws from the partnership.
HUANG-KONG-LUNG
ORIENTAL DESIGN
Balance Sheet
December 31, 2018
Liabilities Assets $ 13,000 Accounts Payable 19,000 89,000 70,000 Huang, Capital Kong, Capital Lung, Capital Total Partn

Requirements
Record Huang's withdrawal from the partnership under the following independent plans:
1. In a personal transaction, Huang sells her equity to Wo, who pays Huang $145,000 for her interest. Kong and Lung agree to accept Wo as a partner.
2. The partnership pays Huang cash of $5,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest.
3. The partnership pays Huang $80,000 for her book equity.
4. The partnership pays Huang $27,000 for her book equity?

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...
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Horngrens Accounting

ISBN: 978-0134674681

12th edition

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

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