The capital balances for the partnership of Diaz, Isidro, and Nelson are as follows: Capital-Diaz .....
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The capital balances for the partnership of Diaz, Isidro, and Nelson are as follows: Capital-Diaz .. Capital-Isidro . Capital-Nelson $1,500,000 900,000 600,000 The partners share income in a 2:4:4 ratio. Nelson decides to retire. Diaz and Isidro continue the partner- ship, sharing income in a 2:4 (1:2) ratio. Required Prepare the journal entry or entries to record the retirement of Nelson in each of the following scenarios: Diaz and Isidro use their personal assets to buy Nelson's interest for $800,000. b. The partners agree to pay Nelson $750,000 of partnership cash. The bonus method is used. Same as b., but the partial goodwill approach is used. d. а. c. Same as b., but the total goodwill approach is used. The partners agree to pay Nelson $450,000 of partnership cash. The difference is attributed to over- valued plant and equipment, and the total goodwill approach is used. е. The capital balances for the partnership of Diaz, Isidro, and Nelson are as follows: Capital-Diaz .. Capital-Isidro . Capital-Nelson $1,500,000 900,000 600,000 The partners share income in a 2:4:4 ratio. Nelson decides to retire. Diaz and Isidro continue the partner- ship, sharing income in a 2:4 (1:2) ratio. Required Prepare the journal entry or entries to record the retirement of Nelson in each of the following scenarios: Diaz and Isidro use their personal assets to buy Nelson's interest for $800,000. b. The partners agree to pay Nelson $750,000 of partnership cash. The bonus method is used. Same as b., but the partial goodwill approach is used. d. а. c. Same as b., but the total goodwill approach is used. The partners agree to pay Nelson $450,000 of partnership cash. The difference is attributed to over- valued plant and equipment, and the total goodwill approach is used. е.
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Answer SOLUTION Particulars Debit Credit a Capital Nelson 600000 Capital Diaz 2... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
Posted Date:
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