part 1 meir benson and lau are partners and share income and loss in a 3 2 5 ratio t 4372634

Part 1. Meir, Benson, and Lau are partners and share income and loss in a 3:2:5 ratio. The partnership’s capital balances are as follows: Meir, $168,000; Benson, $138,000; and Lau, $294,000. Benson decides to withdraw from the partnership, and the partners agree not to have the assets revalued upon Benson’s retirement. Prepare journal entries to record Benson’s February 1 withdrawal from the partnership under each of the following separate assumptions: Benson (a) Sells her interest to North for $160,000 after Meir and Lau approve the entry of North as a partner; (b) Gives her interest to a son-in-law, Schmidt, and there-after Meir and Lau accept Schmidt as a partner; (c) Is paid $138,000 in partnership cash for her equity; (d) Is paid $214,000 in partnership cash for her equity; (e) Is paid $30,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated depreciation of $23,200. Part 2. Assume that Benson does not retire from the partnership described in part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhode’s entry into the partnership under each of the following separate assumptions: Rhode invests (a) $200,000; (b) $145,000; (c) $262,000. View Solution:
Part 1 Meir Benson and Lau are partners and share

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