Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio (in ratio form: Lopez, 6⁄11; Cruz, 4⁄11; and Perez, 1⁄11). 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 separate situation: Perez is paid for her equity using partnership cash of (1) $1,200; (2) $1,600; and (3) $700.
Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio (in ratio form: Lopez, 6⁄11; Cruz, 4⁄11; and Perez, 1⁄11). 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 separate situation: Perez is paid for her equity using partnership cash of (1) $1,200; (2) $1,600; and (3) $700.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lopez, Cruz, and Perez are partners and share net income and loss in a 6:4:1 ratio (in ratio form: Lopez,
6⁄11; Cruz, 4⁄11; and Perez, 1⁄11). On December 31, Perez withdraws from the
the partners are Lopez, $3,000; Cruz, $1,800; and Perez, $1,200. Prepare
withdrawal under each separate situation: Perez is paid for her equity using partnership cash of
(1) $1,200; (2) $1,600; and (3) $700.
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