Question

Problem 12-5A On December 31, the capital balances and income ratios in TEP Company are as follows. Partner Trayer Emig Posada Capital Balance $60,000 40,000 30,000 Income Ratio 50% 30% 20% Journalize the withdrawal of Posada under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent mane (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. No. Account Titles and Explanation Debit Credit 1. 2.

Answer 1

will AC JOURNAL DEBIT CREDE PARTICULARS AC Pasoda Capital Dr. 30.000 15,000 To Trayer Capital the To Eng Capital to 15.000 (to record withdrawal of Pasada) 2) Pasoda Capital A ... Dr. 30,000 To Emig Capital to 30,000 Co vrecord withdrawal of Pasada) 37 Pasoda Cabital AC hDr. 30,000 Trayer Capital 17 ($4,000x1B) De 2,500 Enig capital. The 15 4000x333) ... 1,500 34,000 (to record withdrawal Paroda) -> Pasada Capital ...DG 30,000 To Travex Cabital t ($8,000x 5.000 To Eming Capital *c (1$ 8.000x *) To Cach A 3.000 22000 To record withdrawal of Pasoda) 518)