The O'Hara, Peters, and Lillis partnership balance sheet reports capital of $60,000 for O'Hara, $110,000 for Peters, and $10,000 for Lillis. O'Hara is withdrawing from the firm. The partners have shared profits and losses in the ratio of 1/3 to O'Hara, 1/3 to Peters, and 1/3 to Lillis. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his partners' equity. Journalize the withdrawal of O'Hara. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
The O'Hara, Peters, and Lillis partnership balance sheet reports capital of $60,000 for O'Hara, $110,000 for Peters, and $10,000 for Lillis. O'Hara is withdrawing from the firm. The partners have shared profits and losses in the ratio of 1/3 to O'Hara, 1/3 to Peters, and 1/3 to Lillis. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his partners' equity. Journalize the withdrawal of O'Hara. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:The O'Hara, Peters, and Lillis partnership balance sheet reports capital of $60,000 for O'Hara, $110,000 for Peters, and $10,000 for Lillis. O'Hara is withdrawing from the firm. The partners have shared profits and losses in the ratio
of 1/3 to O'Hara, 1/3 to Peters, and 1/3 to Lillis. The partnership agreement states that a withdrawing partner will receive cash equal to the book value of his partners' equity. Journalize the withdrawal of O'Hara. (Record debits
first, then credits. Select the explanation on the last line of the journal entry table.)
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