Lopez, Cruz, and Perez are partners and share net income and loss in a 7:3:1 ratio (in ratio form: Lopez On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $2,500. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is p
Lopez, Cruz, and Perez are partners and share net income and loss in a 7:3:1 ratio (in ratio form: Lopez On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $2,500. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is p
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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, $4,300; Cruz, $3,100; and Perez,
$2,500. Prepare journal entries to record Perez's withdrawal under each separate situation: Perez is paid for her equity using
partnership cash of (1) $2,500; (2) $3,550; and (3) $1,350.
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Journal entry worksheet
1
2
3
Record the retirement of Perez assuming that she is paid $2,500 for her
equity.
Date
Dec 31
Note: Enter debits before credits.
General Journal
Debit
Credit
Transcribed Image Text:3³
Record the retirement of Perez assuming that she is paid $3,550 for her
equity.
1
Note: Enter debits before credits.
Date
Dec 31
Show Transcribed Text
Journal entry worksheet
1
2
General Journal
3
Debit
Credit
Record the retirement of Perez assuming that she is paid $1,350 for her
equity.
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