John, Susan, and Carl each have a $200,000 capital balance. They share profits and losses as follows:

Question:

John, Susan, and Carl each have a $200,000 capital balance. They share profits and losses as follows: 1:2:1 to John, Susan, and Carl, respectively. Suppose Carl is withdrawing from the business, and the partners agree that no appraisal of assets is needed.
Requirements
1. Journalize the withdrawal of Carl if the agrees to pay Carl $200,000 cash.
2. Journalize the withdrawal of Carl if the agrees to pay Carl $140,000 cash.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...