Brislin, Humphreys, and Watkins share income and losses in a ratio of 3:2:5, respectively. The capital account balances of the partners are as follows: Brislin Capital, $600,000; Humphreys, Capital, $360,000; and Watkins, Capital $260,000.

Required:

Prepare the journal entry on the books of the partnership to record the withdrawal of Watkins under the following independent circumstances:

1. The partners agree that Watkins should be paid $280,000 by the partnership for his interest.
2. The partners agree that Watkins should be paid $220,000 by the partnership for his interest.

c. Brislin agrees to pay Watkins $180,000 for one-half of his capital interest and Heller agrees to pay Watkins $180,000 for one-half of his capital interest in a personal transaction among the partners.