Question: Owner Withdrawal Problem Complete the following requirements using Excel or Word. Show your calculations. Also, round your answers to the nearest $1. The four partners

Owner Withdrawal Problem Complete the following requirements using Excel or Word. Show your calculations. Also, round your answers to the nearest $1. The four partners and their capital balances are as follows: Payton, Capital $10,000 Dawson, Capital $45,000 Jon, Capital $45,000 Gamali, Capital $25,000 Total $125,000 Currently, the four partners split income/loss 3:2:1:2 respectively. Create journal entries for Payton leaving the partnership under each of the following scenarios: 1. Payton leaves and transfers interest to Gina. 2. Payton sells interest to Gina for $50,000. 3. Payton leaves for $10,000 cash. 4. Payton leaves for $60,000 cash. 5. Payton leaves and takes a truck on the books at $60,000 and Accumulated Depreciation $20,000. Carrying Value is $40,000. 6. Payton leaves for Equipment with a value of $40,000 and Accumulated Depreciation $20,000. Carrying Value $20,000 plus $5,000 cash

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!