(SOLVED) Ho Kung Liang Oriental Design is a partnership owned by three individuals


Question Description:

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Ho-Kung-Liang Oriental Design is a partnership owned by three individuals. The partners share profits and losses in the ratio of 30% to Ho, 40% to Kung, and 30% to Liang. At December 31, 2016, the firm has the following balance sheet. On December 31, Ho withdraws from the partnership.
Requirements
Record Ho’s withdrawal from the partnership under the following independent plans:
1. In a personal transaction, Ho sells her equity to Wong, who pays Ho $120,000 for her interest. Kung and Liang agree to accept Wong as a partner.
2. The partnership pays Ho cash of $20,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest.
3. The partnership pays Ho $55,000 for her book equity.
4. The partnership pays Ho $8,000 for her book equity.

Answer

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