On December 31, the capital balances and income ratios in Blossom Company are as follows.
Partner
Capital Balance
Income Ratio
Trayer
$45,000
50%
Emig
30,000
30%
Posada
22,500
20%
Journalize the withdrawal of Posada under each of the following independent assumptions. (Credit account
titles are automatically indented when the amount is entered. Do not indent manually. List all
debit entries before credit entries. If no entry is required, select \"No Entry\" for the account titles
and enter 0 for the amounts.)
1.
Each of the continuing partners agrees to pay $13,500 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 $18,750 cash.
3.
Posada is paid $25,500 from partnership assets, which includes a bonus to the retiring partner.
4.
Posada is paid $16,500 from partnership assets, and bonuses to the remaining partners are recognized.
