Abby, Bernie, and Conner own a firm as partners. Abby has a capital balance of $28,200; Bernie has a capital balance of $44,700; and Conner has a capital balance of $39,200. As per the partnership agreement, partners share in profits equally. Abby decides to retire from the partnership receiving cash and no bonus. The journal entry would be: OA. debit Cash $37,367, and credit Abby Capital for $37,367 B. debit Abby Capital for $28,200 and credit Cash for $28,200 OC. debit Cash $28,200 and credit Abby, Capital $28,200 O D. debit Abby Capital for $37,367 and credit Cash for $37,367
Abby, Bernie, and Conner own a firm as partners. Abby has a capital balance of $28,200; Bernie has a capital balance of $44,700; and Conner has a capital balance of $39,200. As per the partnership agreement, partners share in profits equally. Abby decides to retire from the partnership receiving cash and no bonus. The journal entry would be: OA. debit Cash $37,367, and credit Abby Capital for $37,367 B. debit Abby Capital for $28,200 and credit Cash for $28,200 OC. debit Cash $28,200 and credit Abby, Capital $28,200 O D. debit Abby Capital for $37,367 and credit Cash for $37,367
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 43P
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Transcribed Image Text:Abby, Bernie, and Conner own a firm as partners. Abby has a capital balance of $28,200; Bernie has a capital balance
of $44,700; and Conner has a capital balance of $39,200. As per the partnership agreement, partners share in profits
equally. Abby decides to retire from the partnership receiving cash and no bonus. The journal entry would be:
OA. debit Cash $37,367, and credit Abby Capital for $37,367
OB. debit Abby Capital for $28,200 and credit Cash for $28,200
O C. debit Cash $28,200 and credit Abby, Capital $28,200
O D. debit Abby Capital for $37,367 and credit Cash for $37,367
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