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Part 1 Goering Zarcus and Schmit are partners and share income and loss in a 3 2 5 ratio. The partnership’s capital balances are as follows Goering $84000 Zarcus $69000 and Schmit

Part 1. Goering, Zarcus, and Schmit are partners and share income and loss in a 3:2:5 ratio. The partnership’s capital balances are as follows: Goering, $84,000; Zarcus, $69,000; and Schmit, $147,000. Zarcus decides to withdraw from the partnership, and the partners agree to not have the assets revalued upon Zarcus’s retirement. Prepare journal entries to record Zarcus’s February 1 withdrawal from the partnership under each of the following separate assumptions: Zarcus (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.

Jul 20 2020 Read more Less More

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