Question: homework question I can't seem to get right Problem 11-7A Withdrawal of a partner J LO4 CHECK FIGURES: d. Dr. Gale, Capital: $18,750; e. Cr.
homework question I can't seem to get right

Problem 11-7A Withdrawal of a partner J LO4 CHECK FIGURES: d. Dr. Gale, Capital: $18,750; e. Cr. Gale, Capital: $8,531.25 Gale, Mclean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $97,000; Mclean, $95,000; and Lux, $160,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare general journal entries to record the May 1, 2020, withdrawal of Mclean from the partnership under each of the following unrelated assumptions: a. McLean sells his interest to Freedman for $181,000 after Gale and Lux approve the entry of Freedman as a partner (where Mclean receives the cash personally from Freedman). b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner. c. Mclean is paid $95,000 in partnership cash for his equity. d. Mclean is paid $145,000 in partnership cash for his equity. e. McLean is paid $40,250 in partnership cash plus machinery that is recorded on the partnership books at $128,000 less accumulated depreciation of $96,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
