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Meir, Zarcus, and Ross are partners and share income and loss in a 1:4:5 ratio. The partnership's capital balances are as follows: Meir, $43,000; Zarcus,
Meir, Zarcus, and Ross are partners and share income and loss in a 1:4:5 ratio. The partnership's capital balances are as follows: Meir, $43,000; Zarcus, $179,000; and Ross, $228,000. Zarcus decides to withdraw from the partnership, and the partners agree to not have the assets revalued upon Zarcus's retirement. 1.Prepare journal entries to record Zarcus's February 1 withdrawal from the partnership under each of the following separate assumptions. 2. Assume that Zarcus does not retire from the partnership described in Requirement 1. Instead, Potter is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Potter's entry into the partnership under each of the following separate assumptions
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