B. Higgins, J. Mayo, and N. Rice have capital balances of $95,000, $75,000, and $60,000, respectively. They share income or loss on a 5:3:2 basis. Rice withdraws from the partnership under each of the following conditions.
- Rice is paid $64,000 in cash from partnership assets, and a bonus is granted to the retiring partner.
- Rice is paid $52,000 in cash from partnership assets, and bonuses are granted to the remaining partners.
Instructions
Journalize the withdrawal of Rice under each of the assumptions above.