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.

Sale on SolutionInn
  • CreatedMarch 26, 2014
  • Files Included
Post your question