Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 12-05A a-b On December 31, the capital balances and income ratios in Blossom Company are as follovs. Partner Capital Balance Income Ratio Trayer Emig

image text in transcribedimage text in transcribed

Problem 12-05A a-b On December 31, the capital balances and income ratios in Blossom Company are as follovs. Partner Capital Balance Income Ratio Trayer Emig Posada $62,500 37,500 30,000 50% 30% 20% Your answer is partially correct. Try again. 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 $16,400 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity. (2) Emig agrees to purchase Posada's ownership interest for $25,000 cash. (3) Posada is paid $33,680 from partnership assets, which includes a bonus to the retiring partner. (4) Posada is paid $21,360 from partnership assets, and bonuses to the remaining partners are recognized. No. Account Titles and Explanation Debit Credit 1. Posada, Capital Trayer, Capital x Emig, Capital 2. Posada, Capital Emig, Capital 3. Posada, Capital Trayer, Capital Emig, Capital Cash X 4. Posada, Capital Cash Trayer, Capital Emig, Capital LINK TO TEXT > Your answer is incorrect. Try again. If Emig's capital balance after Posada's withdrawal is $41,430, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada? (1) Total bonus (2) Cash paid to Posada Click if you would like to Show Work for this question: Open Show Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Leadership The Professional And Leadership Skills You Need

Authors: Brian D. Kush

1st Edition

0470450010, 9780470450017

More Books

Students also viewed these Accounting questions

Question

7. Identify six intercultural communication dialectics.

Answered: 1 week ago