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    Journalize Transactions for Durham

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    Journalize the withdrawal of Durham under each of the following assumptions. Each of the continuing partners agrees to pay $18,000 in cash from personal funds to purchase Durham's ownership equity. Each receives 50% of Durham's equity.

    1. Ames agrees to purchase Durham's ownership interest for $25,000 cash.
    2. Durham is paid $34,000 from partnership assets, which includes a bonus to the retiring partner.
    3. Durham is paid $22,000 from partnership assets, and bonuses to the remaining partners are recognized.

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    Partner Capital Balance Income Ratio
    J. Fagan $60,000 50%
    P. Ames 40,000 30%
    K. Durham 26,000 20%
    On December 31, the capital balances and income ratios in FAD Company are as follows.

    Journalize the withdrawal of Durham under each of the following assumptions. Each of the continuing partners agrees to pay $18,000 in cash from personal funds to purchase Durham's ownership equity. Each receives 50% of Durham's equity.
    1. Ames agrees to purchase Durham's ownership ...

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    The solution assists with journalizing transactions for Durham.

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