Nick Rawls is to retire from the partnership of Rawls #8838

Nick Rawls is to retire from the partnership of Rawls and Associates as of March 31, the end of
the current fiscal year. After closing the accounts, the capital balances of the partners are as
follows: Nick Rawls, $265,000; Sarah Fitzpatrick, $130,000; and Antoine Faber, $165,000. They
have shared net income and net losses in the ratio of 3:2:2. The partners agree that the
merchandise inventory should be increased by $24,000, and the allowance for doubtful
accounts should be increased by $3,000. Rawls agrees to accept a note for $170,000 in partial
settlement of his ownership equity. The remainder of his claim is to be paid in cash. Fitzpatrick
and Faber are to share equally in the net income or net loss of the new partnership. Journalize
the entries to record (a) the adjustment of the assets to bring them into agreement with current
market prices and (b) the withdrawal of Rawls from the partnership.View Solution:
Nick Rawls is to retire from the partnership of Rawls

ANSWER
http://paperinstant.com/downloads/nick-rawls-is-to-retire-from-the-partnership-of-rawls/

1/1
Powered by TCPDF (www.tcpdf.org)