Partnership income for $2023$ is reported as $$100,000.$ Each partner withdraws the full amount that is allowed.

On January $1,2024,$ Dunn becomes ill and sells her interest in the partnership $($with the consent of the other two partners$)$ to Judy Postner. Postner pays $$175,000$ directly to Dunn. Net income for $2024$ is $$99,000$ with the partners again taking their full drawing allowance.

On January $1,2025,$ Postner withdraws from the business for personal reasons. The articles of partnership state that any partner may leave the partnership at any time and is entitled to receive cash in an amount equal to the recorded capital balance at that time plus $10$ percent.

Required:

a$.$ Prepare journal entries to record the preceding transactions on the assumption that the bonus $($or no revaluation$)$ method is used.

Drawings need not be recorded, although the balances should be included in the closing entries.

b$.$ Prepare journal entries to record the previous transactions on the assumption that the goodwill $($or revaluation$)$ method is used.

Drawings need not be recorded, although the balances should be included in the closing entries.

Complete this question by entering your answers in the tabs below.

Required $A$

Prepare journal entries to record the preceding transactions on the assumption that the bonus $($or no revaluation$)$ method is used.

Drawings need not be recorded, although the balances should be included in the closing entries.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your answers to the nearest dollar amount.

Show less $A$