The partnership of Ace, Jack, and Spade has been in business for25 years. On December 31, 20X5, Spade decided to retire. Thepartnership balance sheet reported the following capital balancesfor each partner at December 31, 20X5:
| |
| Ace, Capital | $ | 151,600 | |
| Jack, Capital | | 201,800 | |
| Spade, Capital | | 121,200 | |
|
The partners allocate partnership income and loss in the ratio20:30:50, respectively.
Required:
Record Spade’s withdrawal under each of the following independentsituations.
g. Because of limited cash in the partnership, Spade receivedland with a fair value of $100,200 and a partnership note payablefor $51,500. The land’s carrying amount on the partnership bookswas $61,800. Capital of the partnership after Spade’s retirementwas $361,300. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)
A.
Land
Ace capital
Jack capital
spade capital
B
Spade capital
ace capital
jack capital
land credit: 100,200
Notes payable: 51, 500
