Reference no: EM132612454

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

Partner            Capital Balance                Income Ratio

Trayer                   $56,500                          50%

Emig                       40,500                        30%

Posada                      32,000                      20%

Question 1: Journalize the withdrawal of Posada under each of the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1) Each of the continuing partners agrees to pay $19,200 in cash from personal funds to purchase Posada's ownership equity. Each receives 50% of Posada's equity.

2) Emig agrees to purchase Posada's ownership interest for $23,600 cash.

(3) Posada is paid $35,600 from partnership assets, which includes a bonus to the retiring partner.

(4) Posada is paid $23,840 from partnership assets, and bonuses to the remaining partners are recognized.

Question 2: If Emig's capital balance after Posada's withdrawal is $44,070, what were (1) the total bonus to the remaining partners and (2) the cash paid by the partnership to Posada?