After several years of operations, the partnership of Baldwin, Cowan, and Stewart is to be liquidated. After
Question:
After several years of operations, the partnership of Baldwin, Cowan, and Stewart is to be liquidated. After making closing entries on June 30, 20--, the following accounts remain open:
Account Balance | ||||
---|---|---|---|---|
Account Title | Debit | Credit | ||
Cash | $4,600 | |||
Inventory | 55,970 | |||
Other Assets | 178,500 | |||
Liabilities | $40,170 | |||
R. J. Baldwin, Capital | 50,800 | |||
N. R. Cowan, Capital | 89,500 | |||
K. M. Stewart, Capital | 58,600 |
The non-cash assets are sold for $247,490. Profits and losses are shared equally.
Statement of Partnership Liquidation
1. Prepare a statement of partnership liquidation for the period July 1–20, 20--, showing the following:
If an amount box does not require an entry, leave it blank.
The sale of noncash assets on July 1
The allocation of any gain or loss to the partners on July 1
The payment of the liabilities on July 15
The distribution of cash to the partners on July 20
2. Journalize these four transactions in a general journal.
If an amount box does not require an entry, leave it blank.
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas