Simonsen,Paulson,and Richardson Are Partners in a Firm with the Following

Multiple Choice

Simonsen,Paulson,and Richardson are partners in a firm with the following capital account balances: $$\begin{array} { | l | r | } \hline \text { Simonsen } & \$ 60,000 \\\hline \text { Paulson } & 170,000 \\\hline \text { Richardson } & 90,000 \\\hline\end{array}$$ The profit-and-loss-sharing ratio among Simonsen,Paulson,and Richardson is 1:3:2,in the order given.Paulson is retiring from the partnership on December 31,2018.Paulson's capital account is settled at book value.Which of the following journal entries would the firm record for Paulson's withdrawal?

A) $$\begin{array} { | c | r | l | } \hline \text { Paulson, Capital } & 170,000 & \\\hline \text { Cash } & & 170,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Paulson, Capital } & 170,000 & \\\hline \text { Cash } & & 110,000 \\\hline \text { Simonsen, Capital } & & 20,000 \\\hline \text { Richardson, Capital } & & 40,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | l | } \hline \text { Cash } & 170,000 & \\\hline \text { Paulson, Capital } & & 170,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Paulson, Capital } & 170,000 & \\\hline \text { Simonsen, Capital } & 60,000 & \\\hline \text { Richardson, Capital } & 90,000 & \\\hline \text { Cash } & & 320,000 \\\hline\end{array}$$