On December 31, the capital balances and income ratios in Noma Company are as follows. Instructions(a) Journalize

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

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Instructions(a) Journalize the withdrawal of Ogden 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 Ogden??s ownership equity. Each receives 50% of Ogden??s equity.(2) White agrees to purchase Ogden??s ownership interest for $22,000 in cash.(3) From partnership assets, Ogden is paid $34,000, which includes a bonus to the retiring partner.(4) Ogden is paid $19,000 from partnership assets. Bonuses to the remaining partners are recognized.(b) If White??s capital balance after Ogden??s withdrawal is $55,000, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership toOgden?

Partnership
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: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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