Final answer:
To record Perez's withdrawal, journal entries must be made to reflect the changes in equity accounts. Examples of the journal entries for three situations where Perez is paid different amounts for her equity are provided.
Step-by-step explanation:
To record Perez's withdrawal, we need to create a journal entry that reflects the changes in the equity accounts. In each of the three situations, we will debit Perez's equity account, credit cash (paying her for her equity), and adjust the remaining partners' equity accounts based on their new profit-sharing ratio. Here are the journal entries:
(1) If Perez is paid $1,300:
- Debit: Perez's Equity - $1,300
- Credit: Cash - $1,300
- Debit: Lopez's Equity - $700
- Debit: Cruz's Equity - $300
(2) If Perez is paid $1,750:
- Debit: Perez's Equity - $1,750
- Credit: Cash - $1,750
- Debit: Lopez's Equity - $950
- Debit: Cruz's Equity - $400
(3) If Perez is paid $750:
- Debit: Perez's Equity - $750
- Credit: Cash - $750
- Debit: Lopez's Equity - $400
- Debit: Cruz's Equity - $150