Data for Sedgwick Company are presented in E12-8. In E12-8, Sedgwick Company at December 31 has cash

Question:

Data for Sedgwick Company are presented in E12-8.
In E12-8, Sedgwick Company at December 31 has cash $20,000, noncash assets $100,000, liabilities $55,000, and the following capital balances: Floyd $45,000 and DeWitt $20,000.
The firm is liquidated, and $105,000 in cash is received for the noncash assets. Floyd and
DeWitt income ratios are 60% and 40%, respectively.

Instructions
Prepare the entries to record:
(a) The sale of noncash assets.
(b) The allocation of the gain or loss on realization to the partners.
(c) Payment of creditors.
(d) of cash to the partners.

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...