Burgos Albao Cero Pascual Total

Capital balance before adjustment 500,000 250,000 350,000 250,000 1,350,000

Payment to Cero -250,000 -250,000 Date
Bonus to remaining partners 50,000 25,000 -100,000 25,000 0 1
Capital balance after adjustment 550,000 275,000 0 275,000 1,100,000
Distribution:
Burgos (100,000 x 50%)= 50,000
Albao (100,000 x 25%)= 25,000
Pascual (100,000 x 25%)= 25,000

REQ2
Burgos Albao Cero Pascual Total
Capital balance before adjustment 500,000 250,000 350,000 250,000 1,350,000 Date
Payment to Cero -500,000 -500,000 2
Bonus to remaining partners -75,000 -37,500 150,000 -37,500 0
Capital balance after adjustment 425,000 212,500 0 212,500 850,000

REQ3
Burgos Albao Cero Pascual Total
Capital balance before adjustment 500,000 250,000 350,000 250,000 1,350,000 Date
Payment to Cero -350,000 -350,000 3
Capital balance after adjustment 500,000 250,000 0 250,000 1,000,000
 Burgos and Albao Wrecking Company
Journal Entries
Account Titles and Explanation PR Debit Credit
Cero, Capital 350,000
Burgos, Capital 50,000
Albao, Capital 25,000
Pascual, Capital 25,000
Cash 250,000
To record settlement of Cero from partnership

Burgos and Albao Wrecking Company

Journal Entries
Account Titles and Explanation PR Debit Credit
Cero, Capital 350,000
Burgos, Capital 75,000
Albao, Capital 37,500
Pascual, Capital 37,500
Cash 500,000
To record settlement of Cero from partnership

Burgos and Albao Wrecking Company

Journal Entries
Account Titles and Explanation PR Debit Credit
Cero, Capital 350,000
Pascual, Capital 350,000
To record settlement of Cero from partnership