Question: Josh John and Hassan are partners in a retail lighting

Josh, John, and Hassan are partners in a retail lighting store. They share income and losses in the ratio of 2:2:1, respectively. The partners have agreed to liquidate the partnership. The partnership balance sheet before the liquidation follows.

The other assets were sold on September 1, 2014, for $720,000. Accounts payable were paid on September 4, 2014. The remaining cash was distributed to the partners on September 11, 2014.

1. Prepare a statement of liquidation.
2. Prepare the following journal entries:
a. The sale of the other assets.
b. Payment of the accounts payable.
c. The distribution of the loss from realization.
d. The distribution to the partners of the remainingcash.

  • CreatedMarch 26, 2014
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