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Lopez, Cruz, and Perez are partners and share net income and loss in a 7:3:1 ratio. On December 31, Perez withdraws from the partnership when
Lopez, Cruz, and Perez are partners and share net income and loss in a 7:3:1 ratio. On December 31, Perez withdraws from the partnership when the equities of the partners are: Lopez, $3,900; Cruz, $2,700; and Perez, $2,100. Prepare journal entries to record Perezs withdrawal under each of the following separate situations: Perez is paid for her equity using partnership cash of (1) $2,100; (2) $2,950; and (3) $1,150.
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