Lopez, Cruz, and Perez are partners and share net income and loss in a 6 4 1 ratio On December 31, Perez withdraws from the partnership when the equities of the partners are Lopez, $3,000 Cruz, $1,800 and Perez, $1,200 Prepare journal entries to record Perez 's withdrawal under each of the followin...

1 Jan 31 Perez Capital 1200 Cash 1200 Record retirement of Perez 2 Ja ...

Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio. On

Question:

Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio. On December 31, Perez withdraws from the when the equities of the partners are: Lopez, $3,000; Cruz, $1,800; and Perez, $1,200. Prepare journal entries to record Perez's withdrawal under each of the following separate situations: Perez is paid for her equity using cash of
(1) $1,200;
(2) $1,600;
(3) $700.
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...