7. Agarwal, Bergeron, and Cishek have been in partnership for a number of years. The partners...

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7. Agarwal, Bergeron, and Cishek have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: Cash Accounts receivable Inventory Land, building, and equipment (net) Total assets Prepare journal entries for the following transactions: a. Sold all inventory for $56,000 cash. $11,000 Liabilities $ 61,000 84,000 Agarwal, capital 25,000 74,000 Bergeron, capital 75,000 38,000 Cishek capital $207,000 46,000 Total liabilities and capital $207,000 b. Paid $7,500 in liquidation expenses. c. Paid $40,000 of the partnership's liabilities. d Collected $45,000 of the accounts receivable. e Distributed safe payments of cash; the partners anticipate no further liquidation expenses. f Sold remaining accounts receivable for 30 percent of face value. g Sold land, building, and equipment for $17,000. h. Paid all remaining liabilities of the partnership. /Distributed cash held by the business to the partners. 7. Agarwal, Bergeron, and Cishek have been in partnership for a number of years. The partners allocate all profits and losses on a 2:3:1 basis, respectively Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September 1, the partnership's balance sheet is as follows: Cash Accounts receivable Inventory Land, building, and equipment (net) Total assets Prepare journal entries for the following transactions: a. Sold all inventory for $56,000 cash. $11,000 Liabilities $ 61,000 84,000 Agarwal, capital 25,000 74,000 Bergeron, capital 75,000 38,000 Cishek capital $207,000 46,000 Total liabilities and capital $207,000 b. Paid $7,500 in liquidation expenses. c. Paid $40,000 of the partnership's liabilities. d Collected $45,000 of the accounts receivable. e Distributed safe payments of cash; the partners anticipate no further liquidation expenses. f Sold remaining accounts receivable for 30 percent of face value. g Sold land, building, and equipment for $17,000. h. Paid all remaining liabilities of the partnership. /Distributed cash held by the business to the partners.