The following information is available regarding CGG Company's partnership accounts at December 31, 2021, before completion of the closing entries: No new contributions were made during 2021. Godfrey wishes to withdraw from the partnership January 1, 2022.
Instructions
a) Prepare the statement of partners' equity for the year ended December 31, 2021.
b) Prepare the January 1, 2022 entry to record Godfrey's withdrawal under each of the following three independent alternatives:
(i) Choudrey and Gilker each pay Godfrey $ 10,000 out of their personal accounts and each receives one-half of Godfrey's equity.
(ii) Godfrey is paid $ 100,000 out of partnership cash.
(iii) Godfrey is paid $ 40,000 out of partnership cash.

Question

The following information is available regarding CGG Company's partnership accounts at December 31, 2021, before completion of the closing entries:  No new contributions were made during 2021. Godfrey wishes to withdraw from the partnership January 1, 2022.
Instructions 
a) Prepare the statement of partners' equity for the year ended December 31, 2021.
b) Prepare the January 1, 2022 entry to record Godfrey's withdrawal under each of the following three independent alternatives:
(i) Choudrey and Gilker each pay Godfrey $ 10,000 out of their personal accounts and each receives one-half of Godfrey's equity.
(ii) Godfrey is paid $ 100,000 out of partnership cash.
(iii) Godfrey is paid $ 40,000 out of partnership cash.

Quizplus · Accepted Answer

The Answer of The following information is available regarding CGG Company's partnership accounts at December 31, 2021, before completion of the closing entries:  No new contributions were made during 2021. Godfrey wishes to withdraw from the partnership January 1, 2022.
Instructions 
a) Prepare the statement of partners' equity for the year ended December 31, 2021.
b) Prepare the January 1, 2022 entry to record Godfrey's withdrawal under each of the following three independent alternatives:
(i) Choudrey and Gilker each pay Godfrey $ 10,000 out of their personal accounts and each receives one-half of Godfrey's equity.
(ii) Godfrey is paid $ 100,000 out of partnership cash.
(iii) Godfrey is paid $ 40,000 out of partnership cash.

The Following Information Is Available Regarding CGG Company's Partnership Accounts