Capital balances and profit-and-loss-sharing ratios for the Nix, Man and Per partnership on December 31, 2020, just before the retirement of Nix, are as follows: Nix Capital (30%) 128,000 Man Capital (30%) 140,000 Per Capital (40%) 160,000 Total 428,000 On January 2, 2021, Nix is paid $170,000 cash upon his retirement. Prepare the journal entry(s) to record Nix’s retirement assuming that goodwill, as implied by the payment to Nix, is recorded on the partnership books.
Capital balances and profit-and-loss-sharing ratios for the Nix, Man and Per partnership on December 31, 2020, just before the retirement of Nix, are as follows: Nix Capital (30%) 128,000 Man Capital (30%) 140,000 Per Capital (40%) 160,000 Total 428,000 On January 2, 2021, Nix is paid $170,000 cash upon his retirement. Prepare the journal entry(s) to record Nix’s retirement assuming that goodwill, as implied by the payment to Nix, is recorded on the partnership books.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 4CE
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Capital balances and profit-and-loss-sharing ratios for the Nix, Man and Per partnership on December 31, 2020, just before the retirement of Nix, are as follows:
Nix Capital (30%) 128,000
Man Capital (30%) 140,000
Per Capital (40%) 160,000
Total 428,000
On January 2, 2021, Nix is paid $170,000 cash upon his retirement.
Prepare the
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