Dale Nagel, Keith White, and Issa Mbango have capital balances of $95,000, $73,000, and $65,000, respectively. They share profit or loss on a 4:3:2 basis. White withdraws from the partnership on September 30 of the current year.

Instructions

(a) Journalize the withdrawal of White under each of the following assumptions.

1. White is paid $85,000 cash from partnership assets.

2. White is paid $68,000 cash from partnership assets.

3. White sells his interest in the partnership to Emily Wolstenholme for $68,000 cash.

(b) Determine the balances in the partners' capital accounts and in total partners' equity aft er White has withdrawn from the partnership for conditions 2 and 3 above.