Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $95,000; McLean, $91,000; and Lux, $158,000. The partners share profit and losses in a 3:2:5 ratio. McLean decides to withdraw from the partnership. Prepare General Journal entries to record the May 1, 2020, withdrawal of McLean from the partnership under each of the following unrelated assumptions: a. McLean sells his interest to Freedman for $179,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman). Record the admission of Freedman. b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner. Record the admission of Park. c. McLean is paid $91,000 in partnership cash for his equity. Record withdrawal of McLean, where he is paid $91,000 in partnership cash for his equity. d. McLean is paid $143,000 in partnership cash for his equity. Record the whitdrawal of Mclean. e. McLean is paid $38,250 in partnership cash plus machinery that is recorded on the partnership books at $126,000 less accumulated depreciation of $94,000. (Round final answers to 2 decimal places.) Record the whitdrawal of Mclean.
Gale, McLean, and Lux are partners of Burgers and Brew Company with capital balances as follows: Gale, $95,000; McLean, $91,000; and Lux, $158,000. The partners share
a. McLean sells his interest to Freedman for $179,000 after Gale and Lux approve the entry of Freedman as a partner (where McLean receives the cash personally from Freedman).
Record the admission of Freedman.
b. McLean gives his interest to a son-in-law, Park. Gale and Lux accept Park as a partner.
Record the admission of Park.
c. McLean is paid $91,000 in partnership cash for his equity.
Record withdrawal of McLean, where he is paid $91,000 in partnership cash for his equity.
d. McLean is paid $143,000 in partnership cash for his equity.
Record the whitdrawal of Mclean.
e. McLean is paid $38,250 in partnership cash plus machinery that is recorded on the partnership books at $126,000 less
Record the whitdrawal of Mclean.
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