The following information is available regarding CGG Company's partnership accounts at December 31, 2014, before completion of the closing entries: 
No new contributions were made during 2014. Godfrey wishes to withdraw from the partnership January 1, 2015.
Instructions
a. Prepare the statement of partners' equity for the year ended December 31, 2014.
b. Prepare the January 1, 2015 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.
Definitions:
Percent of Sales Method
A financial forecasting method that estimates various income statement and balance sheet lines as a percentage of projected sales.
Bad Debts Expense
The cost associated with accounts receivable that are not expected to be collected.
Net Credit Sales
The total value of sales made on credit minus returns and allowances, representing actual sales revenue earned and expected to be collected.
Honoring a Note
The act of paying off a note payable or bond at its maturity, fulfilling the issuer's obligation.
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