AC 116 PUG Accounting Capital Balance After a Withdrawal Questions

AC116 Unit 6 Lab Assignment
Question 10 of 10
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On December 31, the capital balances and income ratios in Crane Company are as follows.
Partner
Capital Balance
Trayer
$58,000
Income Ratio
50%
Emig
37,000
30%
Posada
31,500
20%
(a)
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 $18,400 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 $24,200 cash.
(3)
Posada is paid $36,220 from partnership assets, which includes a bonus to the retiring partner.
(4)
Posada is paid $22,300 from partnership assets, and bonuses to the remaining partners are recognized.
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
4.
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(b)
If Emig’s capital balance after Posada’s withdrawal is $40,480, 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
$
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AC116 Unit 6 Lab Assignment
Question 9 of 10
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At April 30, partners’ capital balances in Sunland Company are G. Donley $60,320, C. Lamar $55,680, and J. Pinkston $20,880. The income sharing ratios are 5 : 4 : 1, respectively. On May 1, the PDLT Company is formed by admitting J. Terrell to the firm as a partner.
(a)
Journalize the admission of Terrell under each of the following independent assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
(1)
Terrell purchases 50% of Pinkston’s ownership interest by paying Pinkston $18,560 in cash.
(2)
Terrell purchases 331/3% of Lamar’s ownership interest by paying Lamar $17,400 in cash.
(3)
Terrell invests $71,920 for a 30% ownership interest, and bonuses are given to the old partners.
(4)
Terrell invests $48,720 for a 30% ownership interest, which includes a bonus to the new partner.
No.
Account Titles and Explanation
Debit
Credit
1.
2.
3.
4.
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(b)
Lamar’s capital balance is $37,120 after admitting Terrell to the partnership by investment. If Lamar’s ownership interest is 20% of total partnership capital, what were (1) Terrell’s cash investment and (2) the bonus to the new partner?
(1)
Terrell’s cash investment
$
(2)
Bonus to new partner
$
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