Alan, Terry, and Sheila have capital balances of $140,000, $168,000, and $126,000, and they share income on a 5:3:2 basis.

Instructions

Journalize the withdrawal of Terry from the partnership under each of the following circumstances:

1. Terry is paid $140,000 in cash from partnership assets.

2. Terry is paid $168,000 in cash from partnership assets.

3. Terry is paid $126,000 in cash from partnership assets.