CHAPTER 15 5 PLEASE READ please answer the FULL question ple

CHAPTER 15, 5

PLEASE READ: please answer the FULL question, please TYPE your answer, please LABEL your answer.

Required information [The following information applies to the questions displayed below.] The partnership of Ace, Jack, and Spade has been in business for 25 years. On December 31, 20X5, Spade decided to retire. The partnership balance sheet reported the following capital balances for each partner at December 31, 20X5: Ace, Capital $150,900 Jack, capital Spade, Capital 120,700 200,500 The partners allocate partnership income and loss in the ratio 20:30:50, respectively. Required: Record Spade\'s withdrawal under each of the following independent situations. g. Because of limited cash in the partnership, Spade received land with a fair value of $101,500 and a partnership note payable for $50,500. The land\'s carrying amount on the partnership books was $60,900. Capital of the partnership after Spade\'s retirement was $360,700. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.)

Solution

Answers

A

Land\'s Value in book

$                             60,900.00

B

Fair Value of Land

$                           101,500.00

C=B - A

Revaluation of Land

$                             40,600.00

D = C x 20%

Ace Capital

$                               8,120.00

E = C x 30%

Jack Capital

$                             12,180.00

F = C x 50%

Spade Capital

$                             20,300.00

[based on above working]

No.

Event

General Journal

Debit

Credit

A

1

Land

$          40,600.00

Ace, Capital

$                   8,120.00

Jack, Capital

$                 12,180.00

Spade, Capital

$                 20,300.00

Spade, Capital

A

Capital balances before adjustments

$                   120,700.00

B

Land Revaluation

$                     20,300.00

C=A+B

Total

$                   141,000.00

D

Land at FV

$                   101,500.00

E

Notes Payable

$                     50,500.00

F=D+E

Total received

$                   152,000.00

G=F - C

Amount received in excess of capital balance

$                     11,000.00

H = G x 20/50

Excess amount paid from Ace, Capital

$                        4,400.00

I = G x 30/50

Excess amount paid from Jack, Capital

$                        6,600.00

No.

Event

General Journal

Debit

Credit

B

$                   2.00

Spade, Capital

$            4,400.00

Ace, Capital

$            6,600.00

Jack, Capital

$        141,000.00

Land

$              101,500.00

Notes Payable

$                 50,500.00

Ace, Capital

Jack, Capital

Spade, Capital

Total

Capiatl balances before adjustments

$                           150,900.00

$        200,500.00

$              120,700.00

$                     472,100.00

Land Revaluation

$                               8,120.00

$          12,180.00

$                 20,300.00

$                        40,600.00

Total

$                           159,020.00

$        212,680.00

$              141,000.00

$                     512,700.00

Payment to Spade:

Notes Payable

$              (50,500.00)

$                     (50,500.00)

Land at FV

$            (101,500.00)

$                   (101,500.00)

Excess from remaining partners

$                             (4,400.00)

$          (6,600.00)

$                 11,000.00

$                                       -  

Ending Balances

$                           154,620.00

$        206,080.00

$                                -  

$                     360,700.00

A	Land\'s Value in book	$                             60,900.00
B	Fair Value of Land	$                           101,500.00
C=B - A	Revaluation of Land	$                             40,600.00
D = C x 20%	Ace Capital	$                               8,120.00
E = C x 30%	Jack Capital	$                             12,180.00
F = C x 50%	Spade Capital	$                             20,300.00