On December 31, the capital balances and income ratios in DUYP Company are as follows. Instructions (a)
Question:
Instructions
(a) Journalize the withdrawal of Piper 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 Pipers ownership equity. Each receives 50% of Pipers equity.
(2) Yevak agrees to purchase Pipers ownership interest for $22,000 in cash.
(3) From partnership assets, Piper is paid $34,000, which includes a bonus to the retiring partner.
(4) Piper is paid $19,000 from partnership assets. Bonuses to the remaining partner are recognized.
(b) If Yevaks capital balance after Pipers withdrawal is $57,000, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership toPiper?
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso