On December 31, the capital balances and income ratios in Ivanhoe Co. are as follow:Partner. Capital Bal Income RatiosTrayer $63000. 50%Emig 42000 30%Posada 35000. 20%Journalize the withdrawal of Posada under each of the following assumptions:A) Each continuing partner agrees to pay $17400 in cash form personal funds to purchase Posadas's ownership equity. Each receives 50% of Posada's equity.B) Emig agrees to purchase Posada's ownership interest for $23,400 cash.C) Posada is paid $39160 from partnership assets, which includes a bonus to the retiring partner.D) Posada is paid $25720 from partnership assets and bonuses to the remaining patners are recognized. And then if Emigs capital balance after posada’s withdrawal is $45750 what were 1, the total bonus to the remaining partners and 2, the cash paid by the partnership to posada?

Partnership is one of the form of business organisation under which two or more than two persons…

Answered: On December 31, the capital balances…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On December 31, the capital balances and income ratios in Ivanhoe Co. are as follow:

Partner. Capital Bal Income Ratios

Trayer $63000. 50%

Emig 42000 30%

Posada 35000. 20%

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

A) Each continuing partner agrees to pay $17400 in cash form personal funds to purchase Posadas's ownership equity. Each receives 50% of Posada's equity.
B) Emig agrees to purchase Posada's ownership interest for $23,400 cash.
C) Posada is paid $39160 from partnership assets, which includes a bonus to the retiring partner.
D) Posada is paid $25720 from partnership assets and bonuses to the remaining patners are recognized.

And then if Emigs capital balance after posada’s withdrawal is $45750 what were 1, the total bonus to the remaining partners and 2, the cash paid by the partnership to posada?

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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