Julie Lane, Sara Miles, and Amber Noll have capital balances of $49,700, $35,700, and $25,300, respectively. The
Question:
Julie Lane, Sara Miles, and Amber Noll have capital balances of $49,700, $35,700, and $25,300, respectively. The profit and loss ratio is 5:3:2. Assume Noll withdraws from the partnership on December 31 of the current year under each of the following independent conditions:
1. | Miles agrees to purchase all of Noll’s equity by paying $29,940 cash from her personal assets. | |
2. | Noll withdraws $25,300 cash from the partnership. | |
3. | Noll withdraws $30,500 cash from the partnership. |
Journalize the withdrawal of Noll under each of the above assumptions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
(1) Dec. 31 | select an account title to record withdrawal of a partner on December 31 S. Miles, DrawingsA. Noll, CapitalIncome SummaryS. Miles, CapitalCash | enter a debit amount | enter a credit amount |
select an account title to record withdrawal of a partner on December 31 A. Noll, CapitalS. Miles, DrawingsCashS. Miles, CapitalIncome Summary | enter a debit amount | enter a credit amount | |
(To record withdrawal of a partner.) | |||
(2) Dec. 31 | select an account title to record withdrawal of a partner on December 31 Income SummaryS. Miles, CapitalCashA. Noll, DrawingsA. Noll, Capital | enter a debit amount | enter a credit amount |
select an account title to record withdrawal of a partner on December 31 A. Noll, DrawingsCashA. Noll, CapitalIncome SummaryS. Miles, Capital | enter a debit amount | enter a credit amount | |
(To record withdrawal of a partner.) | |||
(3) Dec. 31 | select an account title to record withdrawal of a partner on December 31 Income SummaryJ. Lane, CapitalS. Miles, CapitalCashA. Noll, Capital | enter a debit amount | enter a credit amount |
select an account title to record withdrawal of a partner on December 31 S. Miles, CapitalIncome SummaryCashA. Noll, CapitalJ. Lane, Capital | enter a debit amount | enter a credit amount | |
select an account title to record withdrawal of a partner on December 31 J. Lane, CapitalCashA. Noll, CapitalIncome SummaryS. Miles, Capital | enter a debit amount | enter a credit amount | |
select an account title to record withdrawal of a partner on December 31 A. Noll, CapitalIncome SummaryJ. Lane, CapitalCashS. Miles, Capital | enter a debit amount | enter a credit amount | |
(To record withdrawal of a partner.) |
Determine the balances in the partners’ capital accounts and in total partners’ equity after Noll has withdrawn, for conditions 1 and 3 above. (Do not leave any answer field blank. Enter 0 for amounts.)
Condition 1 | J. Lane Capital | S. Miles Capital | A. Noll Capital | Total Capital | ||||
---|---|---|---|---|---|---|---|---|
Beginning balance | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Ending balance | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
Condition 3 | J. Lane Capital | S. Miles Capital | A. Noll Capital | Total Capital | ||||
---|---|---|---|---|---|---|---|---|
Beginning balance | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | ||||
Ending balance | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow