On December 31, the capital balances and income ratios in Blossom Company are as follows. Partner Capital Balance Income Ratio Trayer $55,000 50% Emig 35,000 30% Posada 25,000 20% (a) D 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 $16,000 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity. Emig agrees to purchase Posada's ownership interest for $23,000 cash. 233 (4) (2) (3) Posada is paid $28,200 from partnership assets, which includes a bonus to the retiring partner. Posada is paid $17,000 from partnership assets, and bonuses to the remaining partners are recognized. No. Account Titles and Explanation 1. Debit Credit
On December 31, the capital balances and income ratios in Blossom Company are as follows. Partner Capital Balance Income Ratio Trayer $55,000 50% Emig 35,000 30% Posada 25,000 20% (a) D 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 $16,000 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity. Emig agrees to purchase Posada's ownership interest for $23,000 cash. 233 (4) (2) (3) Posada is paid $28,200 from partnership assets, which includes a bonus to the retiring partner. Posada is paid $17,000 from partnership assets, and bonuses to the remaining partners are recognized. No. Account Titles and Explanation 1. Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, the capital balances and income ratios in Blossom Company are as follows.
Partner
Capital Balance
Income Ratio
Trayer
$55,000
50%
Emig
35,000
30%
Posada
25,000
20%
(a)
D
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 $16,000 in cash from personal funds to purchase Posada's ownership
equity. Each receives 50% of Posada's equity.
Emig agrees to purchase Posada's ownership interest for $23,000 cash.
233
(4)
(2)
(3)
Posada is paid $28,200 from partnership assets, which includes a bonus to the retiring partner.
Posada is paid $17,000 from partnership assets, and bonuses to the remaining partners are recognized.
No. Account Titles and Explanation
1.
Debit
Credit
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