Heather Catte, Joe Collins, and Chris Gilgan have run a successful partnership for a number of years, sharing income 4:2:1, respectively. On September 30, Joe Collins decided to leave the partnership. After the assets of the partnership have been adjusted to current market values, the capital balances of Catte, Collins, and Gilgan are as follows:
Heather Catte, Capital .......................... $32,000
Joe Collins, Capital .............................. 26,000
Chris Gilgan, Capital ............................ 22,000
Provide the journal entry for Collins' departure under the following independent situations:
a. The partnership offers Collins $26,000 upon his retirement.
b. The partnership offers Collins $24,000 upon his retirement.
c. The partnership offers Collins $28,000 upon his retirement.