..ooo1nland Cel..6:20 PM edu gen wileyplus.com Problem 12-5A (Part Level Submiss

Question

..ooo1nland Cel..6:20 PM edu gen wileyplus.com Problem 12-5A (Part Level Submission) On December 31, the capital balances and income ratios in TEP Company are as follows. Capital Balance Trayer Emig 37-500 0,000 Journalize the withdrawal of Posada under each of the following assumptions. (Credit when amount is entered. Do not indent manually.) account titles are a 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 $25,000 cash. Posada is paid $33,680 from partnership assets, which includes a bonus to the retiring partner Posada is paid $21,360 from partnership assets, and bonuses to the remaining partners are recognized. Attempts: 0 of 3 used SAVE FORLATER

Explanation / Answer

Journal entries to show Posada withdrawal is as shown below:

Working:

Date Particulars L.F Amount ($) Amount ($) 1 Posada Capital 30,000    Trayer Capital 15,000    Emig Capital 15,000 (For withdrawal of Posada) 2 Posada Capital 30,000    Emig Capital 30,000 (For withdrawal of Posada) 3 Posada Capital 30,000 Trayer Capital (3,680*5/8) 2,300 Emig Capital (3,680*3/8) 1,380 cash 33,680 (For withdrawal of Posada) 4 Posada Capital 30,000 Trayer Capital (8,640*5/8) 5,400 Emig Capital (8,640*3/8) 3240 Cash 21,360 (For withdrawal of Posada)

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