Hrm/531 Week 1

Part 1 Goering, Zarcus, and Schmit are partners and share income and loss in a 3:2:5 ratio. The partnership’s capital balances are as follows: Goering, $84,000; Zarcus, $69,000; and Schmit, $147,000. Zarcus decides to withdraw from the partnership, and the partners agree to not have the assets revalued upon Zarcus’s retirement. Prepare journal entries to record Zarcus’s February 1 withdrawal from the partnership under each of the following separate assumptions: Zarcus
(a) Sells her interest to Getz for $80,000 after Goering and Schmit approve the entry of Getz as a partner;
(b) Gives her interest to a son-in-law, Swanson, and thereafter Goering and Schmit accept Swanson as a partner;
(c) Is paid $69,000 in partnership cash for her equity;
1 |Zarcus, Capital |69,000 | |
| | Getz, Capital | |69,000 |
| | To record admission of Getz. | | |

b)
|Feb. 1 |Zarcus, Capital |69,000 | |
| | Swanson, Capital | |69,000 |
| | To record admission of Swanson. | | |

c)
|Feb. 1 |Zarcus, Capital |69,000 | |
| | Cash | |69,000 |
| | To record withdrawal of Zarcus with no bonus. | | |