H. Barrajas, T. Dingler, and R. Fisk have capital balances of $95,000, $75,000, and $60,000, respectively. They

Question:

H. Barrajas, T. Dingler, and R. Fisk have capital balances of $95,000, $75,000, and $60,000, respectively. They share income or loss on a 5 : 3 : 2 basis. Fisk withdraws from the partnership under each of the following conditions.

1. Fisk is paid $68,000 in cash from partnership assets, and a bonus is granted to the retiring partner.

2. Fisk is paid $56,000 in cash from partnership assets, and bonuses are granted to the remaining partners.

Instructions

Journalize the withdrawal of Fisk under each of the assumptions above.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...