Hunter, Folgers, and Tulip have been partners while sharing net income and loss in a...
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Hunter, Folgers, and Tulip have been partners while sharing net income and loss in a 5:3:2 ratio (in percents: Hunter, 50%; Folgers, 30%; and Tulip, 20%). On January 31, the date Tulip retires from the partnership, the equities of the partners are Hunter, $310,000; Folgers, $217,000; and Tulip, $155,000.
Prepare journal entries to record the retirement of Tulip under independent assumption.
Assume Tulip is paid $155,000, $175,000, $125,000 for her equity using partnership cash. (Do not round intermediate calculations. Round final answers to the nearest whole dollar.)
| No | Transaction | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | (a) | Tulip, Capital | 155,000 | |
| Cash | 155,000 | |||
| 2 | (b) | Tulip, Capital | ||
| Hunter, Capital | ||||
| Folgers, Capital | ||||
| 3 | (c) | Tulip, Capital | ||
| Hunter, Capital | ||||
| Folgers, Capital | ||||
| Cash |
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