Prior to the distribution of cash to the partners, the accounts in the Sheridan Company are Cash
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Question:
Prior to the distribution of cash to the partners, the accounts in the Sheridan Company are Cash $42,800; Vogel, Capital (Cr.) $24,800; Utech, Capital (Cr.) $22,800; and Pena, Capital (Dr.) $4,800. The income ratios are 5:3:2, respectively. Sheridan Company decides to liquidate the company.
Prepare the entry to record (1) the absorption of Pena’s capital deficiency by the other partners and (2) the distribution of cash to the partners with credit balances.
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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