111. The BlueFin Partnership agrees to dissolve. The cash balance after selling all assets and paying all liabilities is $60,000. The final capital account balances are: Smith, $35,000; Nagy, $29,000;...





111. The BlueFin Partnership agrees to dissolve. The cash balance after selling all assets and paying all liabilities is $60,000. The final capital account balances are: Smith, $35,000; Nagy, $29,000; and Russ, ($4,000). Russ is unable to pay the capital deficiency. Prepare the journal entries to record the transactions required to dissolve this partnership.









112. Beard, Tanner, Williams are operating as a partnership. The capital account balances at December 31, 2013 are $254,000, $195,000 and $286,000 respectively. Record the entries for the following independent situations.



a. The partners vote to admit Sturges. She is going to invest $150,000 for a 15% interest in the partnership. Profit and losses are split equally between the existing partners.



b. Sturges agrees to buy 50% of Williams interest by paying him $150,000 directly.



c. The partners need new ideas and agree to give Sturges a 20% interest in exchange for $150,000. Profits and losses are shared equally between the existing partners.



d. Williams wants to retire and is willing to leave the partnership in exchange for $281,000. Profits and losses were shared on the ratio of 2:3:5.













May 15, 2022
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