Part 1 Goering, Zarcus, and Schmit are partners and share income and loss in a 3:2:5 ratio.
Question:
(a) Sells her interest to Getz for $80,000 after Goering and Schmit approve the entry of Getz as a partner;
(b) Gives her interest to a son-in-law, Swanson, and thereafter Goering and Schmit accept Swanson as a partner;
(c) Is paid $69,000 in partnership cash for her equity;
(d) Is paid $107,000 in partnership cash for her equity; and
(e) Is paid $15,000 in partnership cash plus equipment recorded on the partnership books at $35,000 less its accumulated depreciation of $11,600.
Part 2 Assume that Zarcus does not retire from the partnership described in Part 1. Instead, Ford is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Ford’s entry into the partnership under each of the following separate assumptions: Ford invests
(a) $100,000;
(b) $74,000; and
(c) $131,000.
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...
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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