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, $5,000; Cruz, $3,800; and Perez, $3,200. Prepare journal entries to record Perezs withdrawal under each separate situation: Perez is paid for her equity using partnership cash of (1) $3,200; (2) $4,600; and (3) $1,700.

Journal entry worksheet

• Record the retirement of Perez assuming that she is paid $4,600 for her equity.