Susan, Preston, and Roman are partners in a firm with the following capital account balances: Susan $144,000 280,000 Preston Roman 228,000 Preston is retiring from the partnership on December 31, 2024. The profit-and-loss-sharing ratio among Susan, Preston, and Roman is 1:2:3, respectively. Preston is paid $190,000 cash in full compensation for his cap account balance. Which of the following journal entries would the firm record for this transaction? O Cash 280,000 280,000 Preston, Capital O Preston, Capital Cash O Preston Capital Cash Susan, Capital Roman, Capital O Preston, Capital Cash Susan, Capital Roman, Capital 190,000 280,000 280,000 190,000 190.000 45.000 45,000 190,000 22,500 67,500
Susan, Preston, and Roman are partners in a firm with the following capital account balances: Susan $144,000 280,000 Preston Roman 228,000 Preston is retiring from the partnership on December 31, 2024. The profit-and-loss-sharing ratio among Susan, Preston, and Roman is 1:2:3, respectively. Preston is paid $190,000 cash in full compensation for his cap account balance. Which of the following journal entries would the firm record for this transaction? O Cash 280,000 280,000 Preston, Capital O Preston, Capital Cash O Preston Capital Cash Susan, Capital Roman, Capital O Preston, Capital Cash Susan, Capital Roman, Capital 190,000 280,000 280,000 190,000 190.000 45.000 45,000 190,000 22,500 67,500
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 47P
Related questions
Question
Transcribed Image Text:Susan, Preston, and Roman are partners in a firm with the following capital account balances:
Susan
Preston
Roman
Preston is retiring from the partnership on December 31, 2024. The profit-and-loss-sharing ratio among Susan, Preston, and Roman is 1:2:3, respectively. Preston is paid $190,000 cash in full compensation for his capital
account balance. Which of the following journal entries would the firm record for this transaction?
O Cash
280,000
280,000
Preston, Capital
O Preston, Capital
Cash
O Preston Capital
Cash
Susan, Capital
Roman, Capital
O Preston, Capital
Cash
$144,000
280,000
228,000
Susan, Capital
Roman, Capital
190,000
280,000
280,000
190,000
190,000
45,000
45.000
190,000
22,500
67,500
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,