E$12\mathrm{.}10($LO $3),$ AP Prior to the distribution of cash to the partners, the accounts in the VUP Company are Cash $$24,000$; Vogel, Capital $($Cr$.)$ $$17,000$; Utech, Capital $($Cr$.)$ $$15,000$; and Pena, Capital $($Dr$.)$ $$8,000.$ The income ratios are $5$:$3$:$2,$ respectively. VUP Company decides to liquidate the company.

Instructions

a$.$ Prepare the entry to record $(1)$ Pena's payment of $$8,000$ in cash to the partnership and $(2)$ the distribution of cash to the partners with credit balances.

b$.$ Prepare the entry to record $(1)$ the absorption of Pena's capital deficiency by the other partners and $(2)$ the distribution of cash to the partners with credit balances.

Journalize admission of a new partner by purchase of an interest.