Journalize the withdrawal of Posada under each of the following assumptions.


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Journalize the withdrawal of Posada under each of the following assumptions. 1 answer below » On December 31, the capital balances and income ratios in TEP Company are as follows. Partner Capital Balance Income Ratio Brayer $60,000 50% Emig 40,000 30% Posada 30,000 20% Instructions (a)Journalize the withdrawal of Posada under each of the following assumptions. (1)Each of the continuing partners agrees to pay $18,000 in cash from personal funds to purchase Posada”s ownership equity. Each receives 50% of Posada”s equity. (2)Emig agrees to purchase Posada”s ownership interest for $25,000 cash. (3)Posada is paid $34,000 from partnership assets, which View complete question » On December 31, the capital balances and income ratios in TEP Company are as follows. Partner Capital Balance Income Ratio Brayer $60,000 50% Emig 40,000 30% Posada 30,000 20% Instructions (a)Journalize the withdrawal of Posada under each of the following assumptions. (1)Each of the continuing partners agrees to pay $18,000 in cash from personal funds to purchase Posada”s ownership equity. Each receives 50% of Posada”s equity. (2)Emig agrees to purchase Posada”s ownership interest for $25,000 cash. (3)Posada is paid $34,000 from partnership assets, which includes a bonus to the retiring partner. (4)Posada is paid $22,000 from partnership assets, and bonuses to the remaining partners are recognized. (b)If Emig”s capital balance after Posada”s withdrawal is $43,600, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada? View less » Jun 11 2014 04:12 PM

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