Solved: Each of the remaining partners agrees to pay 15000 in cash, Accounting Basics

Each of the remaining partners agrees to pay 15000 in cash

On December 31, the capital balances and income ratios in Canasta Company are as follows.

Instructions

(a) Journalize the withdrawal of Spade under each of the following independent assumptions.

(1) Each of the remaining partners agrees to pay $15,000 in cash from personal funds to purchase Spade's ownership equity. Each receives 50% of Spade's equity.

(2) Club agrees to purchase Spade's ownership interest for $22,000 in cash.

(3) From partnership assets, Spade is paid $34,000, which includes a bonus to the retiring partner.

(4) Spade is paid $19,000 from partnership assets. Bonuses to the remaining partners are recognized.

(b) If Club's capital balance after Spade's withdrawal is $55,000, what were

(1) The total bonus to the remaining partners and

(2) The cash paid by the partnership toSpade?

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Accounting Basics: Each of the remaining partners agrees to pay 15000 in cash

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Accounting Basics: Each of the remaining partners agrees to pay 15000 in cash

Reference No:- TGS01516309

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