Question: Assume the following assets liabilities and partners equity in the

Assume the following assets, liabilities, and partners’ equity in the Winner and Perry partnership on December 31, 2014:

The partnership has no cash. When the partners agree to liquidate the business, the assets are sold for $240,000, and the liabilities are paid. Winner and Perry share income and losses in a ratio of 3:1.
1. Prepare a statement of liquidation.
2. Prepare journal entries for the sale of assets, payment of liabilities, distribution of loss from realization, and final distribution of cash to Winner andPerry.
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  • CreatedMarch 26, 2014
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