On December 31, 2023 the capital balances and profit/loss ratios in the DNM Partnership are as follows:

Partner Capital Balance Profit/Loss Ratio

Denise $80,000 50%

Nitosa 40,000 30%

Michael 30,000 20%

Instructions:

Prepare the journal entries to record the withdrawal of Michael under each of the following independent assumptions:

a) Each of the remaining partners agrees to pay $17,000 in cash from personal funds to purchase

Michaels partnership equity. Each receives 50% of Michaels partnership equity.

b) Michael is paid $38,000 in cash from the partnership assets.

c) Michael is paid $26,000 in cash from the partnership assets.