on december 31 the capital balances and income 263187

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

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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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