Ask Question
BusinessBusiness
26 June, 13:03

Able, Baker, and Carter have partnership capital account balances of $600000 each. Income and losses are shared equally. Carter agrees to sell three-fourths of his ownership interest to Able for $525000 and one-fourth to Baker for $187500. Able and Baker will use personal assets to purchase Carter's interest. The partnership's entry to record Carter's withdrawal from the partnership would be

+2
Answers (1)
  1. 26 June, 13:15
    0
    Answer and Explanation:

    The Journal entry is shown below:-

    Carter's Capital Dr $600,000

    To Able's Capital $450,000 (3 : 4 * $600,000)

    To Baker's Capital $150,000

    (Being Carter's withdrawal from the partnership is recorded)

    For recording this we debited the carter capital as it shows the withdrawn amount and credited the able capital and baker capital so that the total withdrawn collected from these partners could come
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Able, Baker, and Carter have partnership capital account balances of $600000 each. Income and losses are shared equally. Carter agrees to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Fox Co. reported $225,000 in income before income taxes for its first year with tax depreciation exceeding its book depreciation by $25,000. Fox also had nondeductible book expenses of $10,000 related to permanent differences.
Answers (1)
Christian spends a significant amount of his time at work performing tasks such as distributing work among his subordinates and arranging their shifts and tasks to be performed. This relates most closely to which managerial function?
Answers (1)
The highest valued alternative that must be given up to engage in an activity is the definition of a. economic equity. b. marginal benefit. c. opportunity cost. d. marginal cost.
Answers (1)
Joseph Juran provided guidance regarding how to conduct quality planning, quality control, and quality improvement. Which of the following items is NOT part of Juran's Quality Trilogy? a.
Answers (1)
The following information is available for Amos Company for the year ended December 31, 2017. Balance of retained earnings, December 31, 2016, prior to discovery of error, $859,000. Cash dividends declared and paid during 2017, $29,000.
Answers (1)
New Questions in Business
Frazier Manufacturing Company collected the following production data for the past month: Units Produced Total Cost 1,600 $44,000 1,300 38,000 1,500 42,000 1,100 33,000 If the high-low method is used, what is the monthly total cost equation
Answers (1)
In the context of the various roles employees take up in an organization, who among the following is most likely to spend a lot of their time listening?
Answers (1)
Because email, chat, and text messages are less formal methods of communication, good technical writing skills are less important for these messages. O True O False
Answers (1)
Several years ago, the United States went to war with Iraq. This led to an increase in government expenditures and a decrease in private consumption and investment. What is the total effect of these circumstances on aggregate demand?
Answers (1)
If the technology is flexible it becomes more difficult to distribute manufacturing in many local facilities. it becomes more difficult to consolidate manufacturing in a few large facilities.
Answers (1)
Home » Business » Able, Baker, and Carter have partnership capital account balances of $600000 each. Income and losses are shared equally. Carter agrees to sell three-fourths of his ownership interest to Able for $525000 and one-fourth to Baker for $187500.
Sign Up Forgot Password?