The December 31, 2008, balance sheet of the Datamation Partnership is shown below.

Datamation Partnership
Balance Sheet

December 31, 2008

Assets

Cash.............$ 80,000

Accounts Receivable......80,000

Inventory..........62,000

Equipment.........290,000

Total Assets.........$512,000

Liabilities and Partners’ Equity

Accounts Payable...............$ 60,000

Notes Payable to Dave, 8% dated September 1, 2008..22,000

Dave, Capital..................220,000

Allen, Capital..................110,000

Matt, Capital..................100,000

Total Liabilities and Partners’ Equity..........$512,000

Dave, Allen, and Matt share profits and loses in the ratio of 50:30:20. The inventory on

December 31 has a fair value of $68,000; accrued interest on the note payable to Dave is to be recognized as of December 31. The book values of all the other accounts are equal to their fair values. Allen withdrew from the partnership on December 31, 2008.

Required:

Prepare the journal entry or entries to record the withdrawal of Allen, given each of the following situations. Assume that the bonus method is used to account for the withdrawal.

1. Allen receives $36,624 cash and a $75,000 note from the partnership for his interest.

2. Matt purchases Allen’s interest for $110,000.

3. The partnership gives Allen $35,000 cash and equipment with a book value and a fair value of $90,000 for his interest.

4. The partnership gives Allen $100,000 cash for his interest.

5. Allen sells one-fourth of his interest to Dave for $40,000 and three-fourths to Matt for $90,000.