Question

If Emig’s capital balance after Posada’s withdrawal is $48,250, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?

(1)		Total bonus		$
(2)		Cash paid to Posada		$

On December 31, the capital balances and income ratios in Carla Vista Company are as follows. Partner Capital Balance Income Ratio Trayer $64,500 50% Emig 44,500 30% Posada 29,500 20%

Your answer is correct. Journalize the withdrawal of Posada under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Each of the continuing partners agrees to pay $16,400 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 $23,600 cash. (3) Posada is paid $33,660 from partnership assets, which includes a bonus to the retiring partner. (4) Posada is paid $20,140 from partnership assets, and bonuses to the remaining partners are recognized.

Answer 1

Andertournal Entry credut $14,750 $14,750 $29,500 Date particulars Debit 10 pasada's capital Ale dr $29,500 To Trayer's capital TO Emig's capital Being to read the relavement of posada (2) Posada's capital Alc dr $ 29,500 - To Emig's capital Being to redd 150 re tivement of posadan (31 posada's capital Ale |$29,500 Troyer's capital $2600 ($33,660 – 29,500)x 5/ Emig's Capital 41560 ($33,660- 29,500)x318 To cash Being to record the retirement of posada) (4) Posadas capital TO Trayer's capital (29500-20,140) x 518 70 Emige capital 27500 -20140X318 To cash (Being to record the retirement of posada) 1933,660 |$29,500 $ 5850 $3510 $20,140 I particulars Emig's current capital Emig's previous Capital Emig's Bonus Amount $48.250 $44,500 $3,750 Total Bonug (3,750/3x8) $10,000 posada's payment. $19.500 (29.500-10000)