Assume the following assets, liabilities, and partners' equity in the Ming and Demmick partnership on December 31,

Question:

Assume the following assets, liabilities, and partners' equity in the Ming and Demmick partnership on December 31, 2011:

The partnership has no cash. When the partners agree to liquidate the business, the assets are sold for $120,000, and the liabilities are paid. Ming and Demmick share income and losses in a ratio of 3:1.
1. Prepare a statement of liquidation.
2. Prepare entries in journal form for the sale assets, payment of liabilities, distribution of loss from realization, and final distribution of cash to Ming andDemmick.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... 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...