After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of

Question:

After closing the accounts on July 1, prior to liquidating the the capital account balances of Gibbs, Hill, and Manson are $24,000, $28,000, and $14,000, respectively. Cash, noncash assets, and liabilities total $11,000, $85,000, and $30,000, respectively. Between July 1 and July 29, the noncash assets are sold for $61,000, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1. Prepare a statement of for the period July 1–29.

Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due.... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...