Part 1. Meir, Zarcus, and Ross are partners and share income and loss in a 1:4:5 ratio. The partnership’s capital balances are as follows: Meir, $43,000; Zarcus, $179,000; and Ross, $228,000. 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 Garcia for $160,000 after Meir and Ross approve the entry of Garcia as a partner;
(b) Gives her interest to a sonin- law, Fields, and thereafter Meir and Ross accept Fields as a partner;
(c) Is paid $179,000 in partnership cash for her equity;
(d) Is paid $215,000 in partnership cash for her equity; and
(e) Is paid $20,000 in partnership cash plus equipment recorded on the partnership books at $70,000 less its accumulated depreciation of $23,200.
Part 2. Assume that Zarcus does not retire from the partnership described in Part 1. Instead, Potter is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Potter’s entry into the partnership under each of the following separate assumptions: Potter invests
(a) $150,000;
(b) $110,000; and
(c) $196,000.