Barb Rusnak, Len Peters, and Doug Morris are partners in RPM Dance Studios. They share net incomes and losses in a 40:40:20 ratios. Doug retires from the partnership on October 14, 2014, and receives $80,000 cash plus a car with a book value of $40,000 (original cost was $84,000).
For each of the following unrelated situations, present the journal entry to record Doug’s retirement assuming the equities of the partnership on October 14 are:
a. Rusnak, $300,000; Peters, $400,000; Morris, $120,000
b. Rusnak, $100,000; Peters, $120,000; Morris; $160,000
c. Rusnak, $130,000; Peters, $160,000; Morris; $60,000