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Posted: May 27th, 2023
On December 31, the capital balances and income ratios in TEP Company are as follows.PartnerCapital BalanceIncome RatioBrayer$60,00050%Emig40,00030%Posada30,00020%Instructions(a)Journalize the withdrawal of Posada under each of the following assumptions.(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.(b)If Emig"s capital balance after Posada"s withdrawal is $43,600, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?
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