Julie Ellis, Sara Lake, and Dan Madden have capital balances of $54,000, $82,000, and $36,000, respectively, and their profit ratios are 4:2:4.
Instructions
Record the withdrawal of Madden from the partnership under each of the following assumptions:
a. Madden is paid $36,000 from partnership assets.
b. Madden is paid $48,000 from partnership assets.
c. Madden is paid $27,000 from partnership assets.

Question

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The Answer of Julie Ellis, Sara Lake, and Dan Madden have capital balances of $54,000, $82,000, and $36,000, respectively, and their profit ratios are 4:2:4.
Instructions
Record the withdrawal of Madden from the partnership under each of the following assumptions:
a. Madden is paid $36,000 from partnership assets.
b. Madden is paid $48,000 from partnership assets.
c. Madden is paid $27,000 from partnership assets.

Julie Ellis, Sara Lake, and Dan Madden Have Capital Balances