Candace Heraghty, Joe Chew, and Chris Kilgour have run a successful partnership for a number of years,

Question:

Candace Heraghty, Joe Chew, and Chris Kilgour have run a successful for a number of years, sharing income 3:2:1, respectively. On December 31, Joe Chew decided to leave the After the assets of the have been adjusted to current market values, the capital balances of Heraghty, Chew, and Kilgour are as follows:
Candace Heraghty, Capital ................................ $122,000
Joe Chew, Capital ........................................... 86,000
Chris Kilgour, Capital ...................................... 54,000
Provide the journal entry for Chew's departure under the following independent situations:
a. Heraghty and Kilgour agree to each pay Chew $40,000 for equal rights to his share.
b. Heraghty and Kilgour agree to each pay Chew $50,000 for equal rights to his share.
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...