Julie Lane, Sara Miles, and Amber Noll have capital balances of $50,000, $40,000, and $30,000, respectively. The profit and loss ratio is 5:3:2. Assume Noll withdraws from the partnership on December 31 of the current year under each of the following independent conditions:

1. Lane and Miles agree to purchase Noll's equity by paying $17,500 each from their personal assets. Each purchaser receives 50% of Noll's equity.

2. Miles agrees to purchase all of Noll's equity by paying $35,000 cash from her personal assets.

3. Noll withdraws $30,000 cash from the partnership.

4. Noll withdraws $35,000 cash from the partnership.

Instructions

(a) Journalize the withdrawal of Noll under each of the above assumptions.

(b) Determine the balances in the partners' capital accounts and in total partners' equity after Noll has withdrawn, for conditions 1 and 4 above.