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5 March, 11:30

Lopez, Cruz, and Perez are partners and share net income and loss in a 7:3:1 ratio (in ratio form: Lopez, 7/11; Cruz, 3/11; and Perez, 1/11). On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,100; Cruz, $1,900; and Perez, $1,300. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $1,300; (2) $1,750; and (3) $750.

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  1. 5 March, 13:03
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    31 Dec

    Dr Perez capital 1300

    Cr Cash 1300

    31 Dec

    Dr Perez Capital 1300

    Dr Lopez Capital 315

    Dr Cruz Capital 135

    Cr Cash 1750

    31 Dec

    Dr Perez Capital 1300

    Dr Lopez Capital 385

    Dr Cruz Capital 165

    Cr Cash 750

    Explanation:

    31 Dec

    Dr Perez capital 1300

    Cr Cash 1300

    31 Dec

    Dr Perez Capital 1300

    Dr Lopez Capital (1750-1300/10*7) 315

    Dr Cruz Capital (1750-1300/10*3) 135

    Cr Cash 1750

    31 Dec

    Dr Perez Capital 1300

    Dr Lopez Capital (1300-750/10*7) 385

    Dr Cruz Capital (1300-750/10*3) 165

    Cr Cash 750
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