Question
Problem 12-05A a-b On December 31, the capital balances and income ratios in Sunland Company are as follows. Partner Capital Balance Income Ratio Trayer $64,500
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Journalize the withdrawal of Posada under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(1) | Each of the continuing partners agrees to pay $19,600 in cash from personal funds to purchase Posadas ownership equity. Each receives 50% of Posadas equity. | |
(2) | Emig agrees to purchase Posadas ownership interest for $24,200 cash. | |
(3) | Posada is paid $37,700 from partnership assets, which includes a bonus to the retiring partner. | |
(4) | Posada is paid $25,780 from partnership assets, and bonuses to the remaining partners are recognized. |
If Emigs capital balance after Posadas withdrawal is $38,930, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?
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