White, Tren, and Woo decide to form a T$-$shirt design partnership. Anna White figures this T$-$shirt design business will help her other company, Tree Top Company, with any T$-$shirt design needs. Additionally, Tren and Woo have connections with many companies and can expand and grow this new partnership.

More info

Each of the three partners contributes $$42,000$ cash to start up the WTW partnership. They agree to share profits in two steps. First, Tren will receive $$12,000$ and Woo will receive $$18,000$ because they will do most of the graphic design work. Any remaining profits or losses will be shared $1$:$2$:$3,$ respectively for White, Tren, and Woo. The business starts on January $1,2025.$ On December $31,2025,$ the business posted a loss of $$30,000.$ White decides to withdraw from the partnership on December $31,2025.$ Tren and Woo agree to give White $$29,500$ for her equity interest.

Requirements

Journalize the contribution of the partners in the partnership on January $1,2025.$

Journalize the allocation of the loss from the Income Summary account.

Journalize the withdrawal of White as a partner on December $31,2025.$

Calculate the ending balances in Tren and Woo's capital accounts.