Kelly, Jen, and Thomas were partners who shared profit and loss in a 3:2:2 ratio. The...
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Kelly, Jen, and Thomas were partners who shared profit and loss in a 3:2:2 ratio. The partnership's capital balances were as follows: Kelly, $240,000; Jen, $200,000; and Thomas, $180,000. On January 5 of 2022, Thomas withdrew from the partnership and was paid $200,000 in partnership cash for his equity. Required: 1. Prepare the journal entries to record Thomas's January 5 withdrawal. 2. What are the ways that a partner can withdraw from the partnership? Explain the impact on firm's total assets and total equity under each of these circumstances. Kelly, Jen, and Thomas were partners who shared profit and loss in a 3:2:2 ratio. The partnership's capital balances were as follows: Kelly, $240,000; Jen, $200,000; and Thomas, $180,000. On January 5 of 2022, Thomas withdrew from the partnership and was paid $200,000 in partnership cash for his equity. Required: 1. Prepare the journal entries to record Thomas's January 5 withdrawal. 2. What are the ways that a partner can withdraw from the partnership? Explain the impact on firm's total assets and total equity under each of these circumstances.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Posted Date:
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